Trust Administration - Where playing it safe is the smartest way to protect your trust

Being a trustee involves looking after the Trust’s money and property, often for many years.

Good trust administration involves keeping everyone safe – you, the trust, and the beneficiaries.

We help trustees understand what to do, to stay organised, and to run their trust in a practical, low-stress way.

Step 1: Understand what trust administration involves

    • Trust administration is the day-to-day running of your trust – making sure the right people are in charge, the assets are properly managed, and the legal boxes are ticked.

      In simple terms, good trust administration means:

      • Understanding the trust deed
        Knowing who the trustees are, who the beneficiaries are, and exactly what the trust owns.

      • Looking after the trust assets
        Trustees must manage investments wisely, pay bills and taxes, and make distributions to beneficiaries in line with the trust deed.

      • Keeping proper records
        Minutes of trustee decisions, details of income and expenses, distributions to beneficiaries, loans, and any changes to the trust must all be accurately recorded.

      • Handling disagreements fairly
        From time to time, beneficiaries may disagree with trustees or with each other. These issues need to be dealt with promptly and fairly to reduce the risk of formal disputes.

      • Meeting legal and tax obligations
        Trustees must comply with New Zealand trust law and tax requirements. That usually means getting advice from a lawyer and an accountant, and keeping the paperwork in good order.

      Done well, trust administration protects your assets and reduces risk for the trustees.

    • Keeping good records.

  • A good starting point is to:

    • Read and understand the trust deed

    • Know who the trustees are

    • Know who the beneficiaries are (and any priority or special rules)

    • List the assets the trust owns (house, investments, loans, business interests, etc).

    If trustees don’t understand the trust deed or their legal duties, they can easily get into trouble – even if their intentions are good. That’s where clear advice and guidance help.

  • Trustees must:

    • Look after and invest trust assets sensibly

    • Make sure bills, rates, insurance and tax are paid

    • Decide when and how to make distributions to beneficiaries, following the trust deed

    • Take advice when needed (for example, from lawyers, accountants or financial advisers).

  • Good records protect trustees and beneficiaries. Trustees should keep:

    • Trust bank statements

    • Investment statements

    • Loan documents and guarantees

    • Minutes or resolutions of trustee decisions

    • Records of distributions and payments to beneficiaries

    • Copies of any advice taken on important decisions.

    If something is ever challenged, good records show what you did and why.

  • Disagreements can arise:

    • Between beneficiaries

    • Between trustees and beneficiaries

    • Between trustees themselves.

    Dealing with issues promptly and fairly, and taking early advice, can often avoid formal complaints or court action.

  • Trustees must make sure the trust:

    • Meets its tax obligations (returns, payments, disclosures)

    • Complies with the Trusts Act 2019 and other relevant laws

    • Gives beneficiaries any information they are entitled to.

    Working with both a lawyer and an accountant helps ensure the trust is compliant and well run.

A customer and a receptionist interacting at a modern salon reception desk, with salon chairs and mirrors in the background.

Step 2: How we make trust administration easier

  • At Ross Holmes Virtual Lawyers Limited, our aim is to make trust administration straightforward and practical.

    Here’s how we help:

    • Clear, practical running instructions
      We provide detailed running instructions tailored to your trust so trustees know exactly what to do, when, and how.

    • Draft minutes and templates
      We supply draft trustee minutes and templates so you can easily record decisions and keep your trust records compliant and organised.

    • Trust operates much like you already do
      With our system, your trust is structured so that, in practice, you usually keep managing your affairs much as you do now – just with better protection and clearer records. If anything, it’s less complicated.

    • Webinars and training
      We offer regular, low-cost trust administration webinars for our trust clients so trustees can stay up to date and confident in their role.

    • Annual review option
      We offer optional annual trust review meetings to check that:

      • the trust is still meeting your goals

      • administration is on track

      • any legal or tax changes are dealt with.

    • Ongoing support as needed
      We can assist with trust administration whenever you need help – from one-off questions through to full ongoing support.

  • Most people want to understand, in everyday terms, how their own finances sit alongside the trust.

    Your personal bank account and assets

    You will usually continue to:

    • Use your personal bank account for your personal income and everyday spending.

    • Personally own depreciating assets such as your household furniture and vehicles.

    This keeps your day-to-day living simple and familiar.

    The trust’s bank account and assets

    Typically, the trust will:

    • Own appreciating assets such as your home, investments, or rental properties.

    • Operate a trust bank account. This account is used for:

      • trust investments

      • trust income (such as rent or interest)

      • payments and distributions to beneficiaries

    The trust bank account is not used for your ordinary personal spending.

    The family home owned by the trust

    Where your home is owned by the trust:

    • You live in the trust’s home as normal.

    • Subject to taxation advice, you will usually pay:

      • rates

      • insurance

      • day-to-day maintenance costs

      • interest on the home loan

    • The trust pays the principal part of the mortgage repayments.

    • You usually lend the trust the money that it uses to pay those principal repayments, creating a loan from you to the trust. This loan is an important part of the overall asset-protection and estate-planning structure.

    We explain these arrangements carefully so you understand how money flows between you and the trust and why it is set up that way.

Two men in business attire sitting on a park bench, one showing a tablet to the other, with greenery in the background.

Step 3: Work with a trust lawyer

  • Working with an experienced trust lawyer gives you confidence that your trust is doing what it was set up to do – protect your assets and benefit the right people.

    A trust lawyer can help by:

    • Guiding trustees through administration
      We help trustees understand their duties, make sound decisions, and keep the right records.

    • Ensuring legal and tax compliance
      We work alongside your accountant (or can recommend one) to help ensure legal and tax obligations are properly handled.

    • Resolving issues early
      If concerns or disagreements arise, we can step in early to help manage them before they turn into major disputes.

    • Updating your trust over time
      As your personal or financial circumstances change – or the law changes – we can update your trust and related documents so they continue to work for you and your family.

  • A trust lawyer can provide guidance and assistance throughout the trust administration process, including helping to resolve disputes and ensuring that all legal and tax requirements are met.

  • Trust administration doesn’t need to be complicated or stressful.

    If you’d like:

    • clear, practical guidance on running your trust

    • help setting up good administration systems

    • a review of your existing trust and its records

    please contact Ross Holmes Virtual Lawyers Limited to arrange a consultation. please contact Ross Holmes Virtual Lawyers Limited for a consultation. We’ll help you manage your trust safely, clearly, and with confidence.

Person interacting with a laptop, using their index finger on the screen, while wearing a smartwatch.

Getting started is simple

1. Book a free 15-minute introduction (for new clients)
In person or via Zoom – a chance to talk about your situation and how we can help.
This meeting is not for legal advice.

2. We outline your best options
We explain, in plain English, the pros and cons of different approaches – for example, a will-based plan versus a trust-based estate and asset protection plan.

3. You receive clear next steps and costs
You’ll know what we recommend, what it will cost, and the likely timeframe – so there are no surprises.

This meeting is to understand your situation and explain how we can help. It is not for legal advice.

How we work with you

When you ask us to help with a trust-based estate and asset protection plan, we will:

Understand your situation and goals
Your family, your relationships, your business or work situation, and what you are trying to protect.

Advise on whether a trust-based plan is suitable
We will be honest if a trust does not add enough benefit, or if changes to an existing trust are needed.

Design the right structure
We help you choose trustees, beneficiaries and key terms that fit your circumstances and future plans.

Prepare and implement the documents
We draft the trust deed, wills, EPAs and related documents, and guide you through signing and initial set-up (including transferring assets where appropriate).

Support you over time
Trusts and estate plans need to be reviewed. We are available to help trustees and families keep your plan up to date as life, laws and assets change.

Book your free 15-minute introduction (for new clients)

Disclaimer: This article should not be relied upon for legal advice. Always seek professional legal advice before making any decisions regarding your trust-based estate and asset protection plan..