What Is a Memorandum of Wishes?

A memorandum of wishes is a written document from the settlor (or settlors) to the trustees, setting out how you would like the trustees to exercise their discretionary powers. It is not legally binding — trustees must still exercise their own independent judgment — but it provides important guidance, especially for future trustees who may not know you or your family personally.

Think of it as a letter of instruction that sits alongside your trust deed. The trust deed sets out what the trustees can do; the memorandum of wishes sets out what you'd like them to do.

Every trust-based estate plan we prepare includes a memorandum of wishes. If you already have a trust but no memorandum, or your circumstances have changed, we can draft or update one for you.

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Our Managing Director, Ross Holmes, writes the trust administration chapters of LexisNexis' Law of Trusts (New Zealand). We know how trustees actually use memorandums of wishes in practice — and we draft them to be genuinely useful, not just legally correct.

What Can a Memorandum of Wishes Include?

Your memorandum can cover any aspect of how the trust should be managed. Common topics include:

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Distributions to Beneficiaries

Who should benefit, how much, when, and under what circumstances — including guidance for children at different ages and stages of life.

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The Family Home

Whether the home should be retained or sold, who should be able to live in it, and how to handle it if circumstances change.

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Business Interests

How business assets should be managed, whether the business should continue or be sold, and who should be involved in running it.

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Charitable Giving

Guidance on which charities or causes you support, how much should be given, and any conditions on charitable distributions.

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Vulnerable Beneficiaries

Special guidance for beneficiaries with disabilities, addiction issues, or other vulnerabilities — including how to provide for them without exposing assets to risk.

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Trustee Guidance

Your preferences for how trustees should work together, when they should take professional advice, and how to handle disputes or difficult decisions.

Important Things to Know

A memorandum of wishes is not legally binding on the trustees. Trustees must still exercise their own independent judgment. However, in practice, trustees take the memorandum very seriously — it is the closest thing they have to hearing directly from you about what you want.

Your memorandum should be reviewed whenever your circumstances change — a new grandchild, a change in financial position, a change of mind about distributions, or a change of trustees. We recommend reviewing it as part of your regular trust review, at least every three years.

Under the Trusts Act 2019, a memorandum of wishes is "trust information" and beneficiaries have a presumptive right to see it. However, trustees can withhold it in certain circumstances — for example, where disclosure could cause conflict or harm. We can advise on how to structure your memorandum with this in mind.

Need a memorandum of wishes?

Whether you're setting up a new trust or updating an existing one, we can draft a memorandum that gives your trustees clear, practical guidance.

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