Espresso Earnings Videos

Hi, I’m Edel from DNA, and welcome back to “Espresso Earnings,” where we serve up business, finance, and tax tips one sip at a time.

Today, I’ve got my latte with me, and I would love to hear from you – what is your beverage of choice? Pop a comment down below. So, for today’s shot of insight, we want to talk about Trusts.

If you’ve got a Trust, it’s worth thinking about: has your Trust been reviewed lately, and is it still relevant?

There’s been a lot of changes that have been happening in this space over the past few years, and as I’m sure you’re aware, the increase to the Trust tax rate being an important consideration, which has gone up to 39%.

But there’s also been the Trusts Act. The new Act that has come into force a few years ago, which has brought with it more disclosure requirements and obligations on trustees. So, it’s really worth having a think of the way your Trust is set up and is that the best situation for you and your family.

Your Trust might have been set up several years ago, and maybe in that time, your circumstances have changed. Maybe in your family, or in the businesses you have, or even just what assets you have and whether they’re included in the Trust, or whether you need to move things around. So, it’s worth taking a look.
Some of the things you might want to think about: The people you have in the roles of trustee and beneficiary. It’s worth thinking – does that still make sense?
And is your Trust still working in the way you intended it to work?

Also, the important thing to think about is whether your Trust is giving you the advantage that you wanted when you set it up, whether financially or structurally, or is it just costing you more in admin, and accounting, and tax.

So, a Trust can be a really great tool, but only if it’s regularly reviewed. And also, just to make sure that it’s working in alignment with your goals.

If you think your Trust is a little bit out of date, we would love to have a chat with you to help you review it and get it into a good position. Whether that might be tweaking it a little bit, maybe it’s time to wind it up if it’s not working anymore, or just keep it rolling, but maybe with just a little bit more intentionality.

Because a Trust that’s not working for you – well, that’s just like drinking decaf by mistake. What’s the point?

This was the latest episode of “Espresso Earnings.” Cheers, and I’ll catch you at the next coffee. Bye!

Hi, I’m Edel from DNA, and welcome back to Espresso Earnings, where we serve up business, finance, and tax tips – one sip at a time.

I’m here with my Espresso for our latest shot of insight. Today we’re talking about Trusts and the risk of being taxed outside New Zealand.

Here’s the deal: even if your Trust is set up in New Zealand, it could still face tax issues overseas. Let’s dive into why that might happen.

One key factor is where the people involved with the Trust live. If a trustee moves to another country, that country might decide to tax the Trust’s income. This is because many countries base their tax rules on where the trustee lives.

In New Zealand, we focus on where the person who set up the Trust (the settlor) lives. If the settlor is a New Zealand resident, the Trust’s income is taxed here, even if the trustee is overseas. But if the trustee is in another country, that country might also want to tax the Trust’s income.

This can lead to double taxation, where the same income is taxed twice.

Think about these situations:

Is your trustee planning to move abroad? This could trigger tax obligations in the new country.

Are you aware of the tax rules in the countries where your trustees or beneficiaries live? These rules can affect your Trust’s tax status.

And importantly – are you prepared for the possibility of double taxation? This can happen if both New Zealand and another country claim the right to tax the Trust’s income.

Trusts with international connections can be complex, but with the right planning, you can manage these risks. If your Trust is crossing borders, let’s chat. We’ll help you navigate the tax landscape and keep your Trust in good standing.

Because a Trust that’s taxed twice? That’s like paying for your coffee twice – nobody wants that!

Cheers, and I’ll catch you at the next coffee!