Setting up a family trust is a smart legal strategy for many people, especially business owners, professionals, and those in complex family or financial situations. But circumstances change over time, and what made sense decades ago may no longer serve a purpose today. If you’re wondering “Do I still need my trust?”, you’re not alone — and Core Legal, based in Masterton and Wellington, can help you find the answer.

???? Real Case: When a Trust Outlives Its Purpose

A retired builder originally created a trust to protect his personal assets from potential business creditors. At the time, he was also in a new relationship and wanted to keep his home separate from potential future relationship property claims. Fast forward several decades: he was now retired, happily married, and all of the couple’s assets had become fully integrated. His wife had lived in the trust-owned home for many years and contributed financially to its upkeep.

After seeking legal advice, he learned that:

• His risk of creditor claims had significantly reduced.

• The relationship property protections once provided by the trust were effectively lost.

• Continuing to maintain the trust brought unnecessary complexity and cost to his estate planning.

⚖️ Trusts in Today’s Legal Landscape

The Trusts Act 2019 introduced new obligations on trustees, including stricter record-keeping, greater transparency, and mandatory disclosure to beneficiaries. These changes have prompted many New Zealanders to re-evaluate their trust structures.

If your trust no longer serves its original purpose, it might be time to consider winding it up.

???? When You Might Not Need Your Trust Anymore

You may no longer need a trust if:

• You’re retired and no longer face business or professional liability.

• Your relationship property situation has changed (e.g. long-term marriage, merged finances).

• Your trust was established for rest home subsidy reasons, and the rules have since changed.

• You’ve already achieved your estate planning goals another way.

• You’re not keeping up with the administrative requirements of the trust.

???? Things to Consider Before Winding Up a Trust

• Review the trust deed: This document outlines how the trust can be legally wound up.

• Distribute trust assets: Assets held in the trust will typically be distributed to beneficiaries.

• Consider tax implications: There may be tax or gifting implications, depending on how the assets are transferred.

• Seek legal guidance: A lawyer will ensure compliance with trust law and a smooth transition of ownership.

???? Still Unsure? Get Professional Advice

At Core Legal, we offer affordable fixed-fee consultations to help you determine whether your trust is still necessary — or if it’s become an outdated structure adding cost and complexity.

If you’re based in Masterton, Wellington, or anywhere across the Wairarapa, our experienced trust lawyers are here to make sure your assets and legacy are structured in a way that suits your current life stage.

Contact Core Legal today to schedule a consultation and get clarity on whether keeping your trust is still the best move for your future.