Hong Kong
Singapore
BVI
Jersey
New Zealand trust law and key features
New Zealand trust law combines the common law with the Trusts Act 2019, and a foreign trust adds registration and disclosure duties owed to Inland Revenue. Below are the governing law, who may act as trustee, and the features and limits, each with its source; take them to your lawyer before the deed is drafted.
Reviewed by a senior trust administrator, updated
The legal frame at a glance
What the law provides, with the source number for each item.
Key facts
- Perpetuity period
- Perpetuity period is 125 years (Trusts Act 2019)[1]
- International trust means
- No New Zealand-resident settlor, or the foreign-sourced income exemption is used[2]
- Trustee requirement
- A New Zealand foreign trust must have one or more resident trustees[3]
- Reporting to authorities
- Contact trustee must register and meet disclosure and annual return duties[2]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The settlor lives outside New Zealand and transfers assets to trustees under a written trust deed.
- At least one trustee is resident in New Zealand, and the contact trustee deals with Inland Revenue.
- The trustees hold legal title and keep the records, minutes and accounts.
- A protector can be named in the deed to consent to key decisions.
The governing law
Trust law in New Zealand starts from the common law of trusts, which New Zealand shares with England and other common law places. Statute then fills in the detail.
The main statute is the Trusts Act 2019, in force from 30 January 2021 (source: New Zealand Legislation).
A foreign trust adds a layer of tax law. Inland Revenue treats a trust as a foreign exemption trust when no settlor has been resident in New Zealand since the first settlement (source: Inland Revenue, Foreign exemption trusts).
A trust is also treated this way when its trustee uses the foreign-sourced income exemption (same source).
The tax and reporting page explains what the trustees file.
Who may act as trustee
An individual or a company can be a trustee. A professional trustee is a business that acts as trustee for clients and keeps the records that the deed and the law require.
For a New Zealand foreign trust there is one firm rule: it must have one or more resident trustees (source: Inland Revenue, Register a New Zealand foreign trust).
In our service a partner firm in New Zealand takes that seat. We coordinate the case around it, and its name is in your documents before you sign.
The trustees choose a contact trustee, who deals with Inland Revenue for the trust. Your lawyer confirms who holds each role. The step-by-step guide shows when each role is filled.
Choosing between an individual and a professional trustee is a practical decision. Think about continuity if the person dies or moves away, how records are kept, and how much time the role takes.
Why the deed matters
The Act sets default rules, and a New Zealand trust deed can adjust many of them. On a point the deed leaves out, the default applies. The deed also feeds the register entry.
When the contact trustee registers the trust in myIR, it gives Inland Revenue the deed, the settlements made onto the trust and the connected persons (same source as the trustee rule above).
For that reason, check the names in the draft against your list of connected persons before signing. The lawyer who drafts the deed confirms who holds each role, and any later change of trustee goes to Inland Revenue too.
Features the law allows
New Zealand law allows several features that families comparing places tend to ask about.
- A long but fixed period. The perpetuity period is 125 years. Labuan takes a different approach, set out on its trust law page.
- A foreign-sourced income exemption. It sits in section HC 26 of the Income Tax Act 2007 and is linked to registration and disclosure.
- A registered, disclosed structure. Registration lists the trust deed, the settlements and the connected persons, which suits families who want an explainable trust.
- Protectors and letters of wishes. These come from the deed rather than from statute. The law leaves room for them, and the deed defines them.
Each feature is a tool, not a result. Whether it works for your family depends on your residence, your assets and the law of the places where they sit.
Limits and requirements
The law also sets limits, and they serve the beneficiaries as much as the settlor.
To keep the exemption, the contact trustee must register the trust and comply with the ongoing disclosure and annual return processes (source: Inland Revenue, Foreign exemption trusts).
Each tax year the trustee completes the return and attaches financial statements (source: Inland Revenue, File an annual return for a New Zealand foreign trust).
The trustees also keep the trust’s accounts and prepare them with an accountant.
Inland Revenue sets minimum standards for the financial statements that go with each annual return (same source).
A trust does not give protection from the rules of other countries. Your lawyer and tax adviser explain how a court or tax authority in your home country treats it.
Before accepting a trust, we identify and verify the settlor, any protector and the other people connected with it, and keep records of that work.
The set-up timeline shows where registration and the first return fit.
Sources and review dates
Every fact on this page carries its source and the date 2026-11-05. Inland Revenue is the source for the tax points.
Your lawyer reads the statute text behind these facts for your case.
We review the page when the law or the official guidance changes.
The overview of New Zealand trusts puts them in context, and the common questions page answers the practical ones.
Frequently asked questions
Which law governs a trust in New Zealand?
A trust set up under New Zealand law is governed by the common law and by statute, mainly the 2019 Act (our reading is a point your lawyer confirms for your case). A foreign trust also follows the tax rules Inland Revenue publishes. A well-drafted deed names its governing law expressly.
Who may act as trustee in New Zealand?
An individual or a company can be a trustee. A New Zealand foreign trust must have one or more trustees who are resident in New Zealand. In our service a partner firm takes that seat, and your lawyer confirms the position for any other arrangement.
Can a trust in New Zealand have a protector?
Yes, if the deed creates one. A protector comes from the deed rather than from a rule specific to foreign trusts: the deed says who the protector is, which decisions need consent and when the protector can be replaced. Inland Revenue lists connected persons by role, so the role is recorded.
Sources
- New Zealand Legislation: Trusts Act 2019, read 2026-11-05.
- Inland Revenue: Foreign exemption trusts, read 2026-11-05.
- Inland Revenue: Register a New Zealand foreign trust, read 2026-11-05.
- Inland Revenue: File an annual return for a New Zealand foreign trust, read 2026-11-05.