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A trust is only required to register with Inland Revenue if the trustee earns income.That means that a trust that only owns a family home does not need to register with Inland Revenue. This person chooses the initial trustee or trustees, decided who will benefit from the trust and what the trust rules will be.This means that trust ownership is private information.

The Settlor can also elect a person, who can be the settlor or someone else, who can add and remove trustees and or beneficiaries.

It is also important to appreciate that the information provided here is in the context of a discretionary beneficiary who has no fixed rights, other than a right to be considered.

Where a trust is a will trust, or a “fixed trust” that provides for beneficiaries to have pre-determined interests in property, for example income for life on 0,000 or my house at 2 Glebe Street; the beneficiary’s rights are related to that property interest and as such are stronger and easier to establish and enforce.

If you suspect that you are the beneficiary of a trust, you can ask the trustee to confirm this. That is, although the trustee need not tell you that you are a beneficiary, the trustee must acknowledge that you are if questioned.

A trustee who did not confirm that a person was a beneficiary when asked would be in breach of trust and could be liable to the beneficiary for any loss the beneficiary incurred because of the breach.

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