In response to the Government's confirmation of its plans to abolish gift duty, Public Trust is calling for people to remember the purpose and reasons for establishing trusts and stressing the need to maintain business as usual.
"Trust's are set up for a reason, whether it be for asset protection or estate planning, and while there are impeding changes to gift duty the reasons and benefits offered by a trust still exist," said Grant Brenton, Public Trust General Manager.
"With the repeal of gift duty not set to be implemented until 1 October 2011, it is important that people do not lose sight of the purpose of their trust or change any planned activity that may impact on the benefits that the trust has been set up to offer them."
In light of the changes Public Trust believes that the prudent management of trusts will become ever more important.
"Currently many people use the annual gifting process as a reason to complete their annual trustee meeting and to check on the management of their trust. With the removal of gift duty it will be even more important for the annual meeting between the trustee's to take place."
Public Trust stresses that proper trust administration is vitally important. "This can not be overlooked and must be clearly communicated to all who are looking at establishing trusts or already have an established family trust in place," said Mr Brenton.
Until the legislation is formally passed and the full impact of the change clearly understood Public Trust believes it is important that the establishment of trusts and gifting programmes for existing trusts are continued. "As such, we are advising our customers to continue their gifting programmes as planned," concluded Mr Brenton.
Public Trust continues to monitor the changes closely and will inform its customers of any developments as they are finalised and any necessary steps that may need to be taken to meet their individual needs.