It is usual at the time a Trust is established for the settlor(s) of a Trust to provide the trustees of the Trust with a Letter of Wishes (sometimes called a Memorandum of Wishes) with regard to the administration of the Trust.
Your Letter of Wishes to the trustees of your Trust is an important document as it is effectively your instructions to your trustees as to how you would like your Trust to be administered (or distributed) particularly after your death.
As to whether a Letter of Wishes has to be disclosed, there are currently varying views as to the status of such a document in New Zealand. The starting point has always been that a Letter or Statement of Wishes is a document of a confidential nature and therefore not capable of disclosure.
A Letter of Wishes should not only be in place but should be reviewed on a regular basis and updated where necessary to record if there is any change in the circumstances of any of the beneficiaries of the Trust or special needs which must be met.
It is our usual practice to prepare a Letter of Wishes when a Trust is established. We usually write to settlor(s) of Trusts every five years suggesting a review of their Letter of Wishes.
For further information, please contact Tony Fortune or Katherine McCarthy
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