APIA Blog

RSS Feed

All for the kids

Thursday, September 24, 2020
 

This week's question comes from long-time APIA member Hari K and the answer is kindly provided by Kristine King of DK Law. The answer is intended to be for general information only and not legal advice. 

If the rental properties are held by a trust with the parents being trustees, what is the best way to ensure that all the children get equal shares of the portfolio after the parents pass away? Will the trust automatically distribute upon the death of the parents or do the parents have to provide for the division in their wills?

 

A will only deals with the assets you own personally on your death and does not dictate how trust assets should be handled.

The trust should have its own set of instructions, this can be in the trust deed itself and/or in a separate document called a memorandum of wishes or memorandum of guidance.

Please be aware that pursuant to section 19 of the Trust Act 2019, if there are no instructions for division or set objectives for the trust that would guide division, on the trust expiry the trustees must distribute to all surviving beneficiaries in equal portions. If you have beneficiaries in your trust in addition to your kids this could mean they are also benefitted on the expiry of the trust, despite you only wanting to benefit your own children.

Best practice is to review your trust documents including your memorandum of wishes or memorandum of guidance annually to ensure your instructions for division are current and provide properly for the people you want to benefit from your trust.

 


Do you have any tenancy related questions? Write to us at admin@apia.org.nz or hit us up on our social channels here and here

 

 

 

 

Recent Posts


Tags

heater Investment tip clnz interest only anti-social behaviour anz HSWA rent increase Must knows LIM auckland Jeff Bezos property maintenance investment strategy subdivision airbnb principal and interest trademe rental market kiwibuild boarding house will income landlord letting fee Case study Gluckman positive cash flow housing affordability productivity interest rates capital gain tax meth HHS rtaa2020 property value advice Guest blog DTI tenancy services short-term rental retaliatory notice off the plan renovation sale and purchas legal Tribunal case study tenancy tribunal Investor story CCC rent arrears gluckman report scotney williams market government structure covid-19 Market report Editor's Choice ventilation re agent inspection buying rules Sponsored post return negotiation winz election2020 ask an expert skill shortage rta cash-flow buying CoreLogic privacy reserve bank warm up new zealand holiday house banking first home buying damage insurance water bill worksafe election 2017 Must know bad tenant ring-fencing HHGA RBNZ Kris Pedersen Mortgages and Insurance data security Property (Relationships) Act early termination rental wof nzpif property management rent robert kiyosaki warren buffett buyer's agent trust property cycle Holler personal growth TCIT letting maintenance commerce commission Question and answer sublease fixed-term tenancy partners ocr brightline extractor fan Level 4 smoke alarm property opes partners shower dome rta reform apia trespass watercare beginner investor auckland council lvr equity relationship termination wealth creation property apprentice initio minor dwelling housing bubble Landlording asbestos cat speculator television cgt barfoot and thompson bond form market rent mortgage Standards New Zealand heating bond financial advisers act RTAA 2019 education p lab quiet enjoyment bankruptcy khh debt enforcement Q&A recycling equity development meth contamination investor finance unitary plan wins parry v inglis ird twg report How to yield shortland chartered accountants business insulation management tenant building mindset sale and purchase tenancy issues house prices

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited