Latest News [index] Corporate trustee update
The use of corporate trustees is now wide spread. While there are significant advantages for professional trustees and client trusts where the trustee acts through a dedicated trustee company, the client trust can be at risk where that trustee company also acts for an insolvent trust.
While Ayres Legal recommends a new trustee company for each trust, the practice of having a single trustee act for a number of trusts is still common.
If the trustee is a professional trustee of financial significance that can be entirely appropriate. However, where the trustee is a company with no assets of its own, trust clients can be somewhat disadvantaged when an unrelated trust that shares the same trustee is found to be insolvent.
If you have any questions about corporate trustees please contact Ayres Legal directly or for the Law Society's views on trustee companies see: http://www.talktax.co.nz/index.php/2011/09/07/law-society-comments-on-newmarket-trustees/