Many family trusts were established years ago and have barely been looked at since. However, a trust is not something that should simply be set up and forgotten. As your family, assets and circumstances change, your trust should be reviewed to ensure it still does what you intended.
If you are a trustee, there is another reason to dust off your trust deed. Under New Zealand’s Trusts Act 2019, trustees have a legal duty to know the terms of the trust and to act in accordance with them. In reality, many trustees have never read their trust deed or are unaware of what it provides.
One of the most important questions is: what happens if you lose mental capacity? If you are the person who holds the power to appoint or remove trustees (often called the appointor), can someone else step into that role if you are unable to make decisions? Some older trust deeds are silent on this issue, which can create uncertainty at exactly the time your family needs clarity.
It is also worth considering what happens when you die. Does your trust deed clearly provide who will hold the power to appoint and remove trustees in the future? Choosing the right person is crucial, as they can ultimately control who manages the trust.
Another document that is often overlooked is a Memorandum of Guidance (MOG). A MOG is not legally binding, but it records your wishes and provides valuable guidance to future trustees about how you would like the trust to be administered after your death or if you lose capacity. If your circumstances have changed, or if your MOG was prepared many years ago, it may no longer reflect your intentions.
A trust review is also an opportunity to look at your beneficiaries. Are the right people included? Are there beneficiaries who should be added or removed? Who has the power to make those changes, and are you comfortable with that arrangement? These are important questions that are often overlooked until it is too late.
Finally, your trust should work alongside your will, not separately from it. Your will, enduring powers of attorney, trust deed and any MOG should all complement one another to ensure your wishes can be carried out smoothly if you lose capacity or when you pass away.
A regular trust review can identify outdated provisions, highlight potential risks, and give you confidence that your trust continues to protect your family and your assets in the way you intended.
If it has been several years since your trust was reviewed, or if you cannot remember the last time anyone looked at your trust deed, it may be time for a check-up. Lawyers can review your trust documentation, explain your options and ensure your estate planning remains fit for purpose.
How can we help?
If you’d like to discuss whether your family trust is set up in the best way for your current situation, WRMK Lawyer’s experienced trust lawyers will be happy to help. Please give one of us a call or contact your usual WRMK lawyer for advice.
Our thanks to Natalie Robinson for writing this article which was first published in the Kaipara Lifestyler in July 2026. Natalie Robinson is an Associate in the WRMK Lawyers Dargaville team.
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