Diana Clement recently interviewed Phil Morgan Rees of the Guardian Trust on the subject of gifting to trusts and the recently changed laws surrounding this practice. As pointed out by Morgan Rees, “Gift duty is only one aspect to be considered. [The rule change] just means you don’t have to file a return to the IRD and you won’t be taxed. What hasn’t been changed is more important.” The full article that appeared on the New Zealand Herald website can be found here.

11 March 2011

The receivers for Allied Nationwide Finance (ANF) have started the sales process for specific loans within ANF’s performing loan book. The receivers are also seeking expressions of interest for performing receivables in Spiers Securities Limited, which the receivers administer on behalf of its board.

Andrew Grenfell and Kerryn Downey of McGrathNicol were appointed receivers and managers of Allied Nationwide Finance Limited on 20 August 2010 by, ANF’s trustee, the New Zealand Guardian Trust Company Limited.
Andrew Grenfell said that the ANF and SSL portfolios can be purchased jointly or separately but all loans within each portfolio must be bought as a whole.

The ANF portfolio comprises business and consumer finance leases, hire purchase agreements revolving credit facilities and other loans predominantly secured by motor vehicles and other chattels.  The portfolio also includes loans subject to a motor vehicle dealer agreement.

ANF is the administrator of a securitisation vehicle – Spiers Securities Limited (SSL) – into which it has sold receivables.  The SSL portfolio consists of receivables for business-related finance leases, consumer finance and conditional purchase agreements and other loan receivables, principally secured by motor vehicles and other chattels.

ANF has no equity interest in SSL and SSL has its own independent board.  ANF does have a financial exposure to SSL by way of subordinated debt of $8.5m as at 31 December 2010.

Media Enquiries:

This release issued on behalf of McGrathNicol by:
Kate Alexander
Alexander Communications
Tel:    +64 9 524 4957
Mob:  +64 27 244 6094
kate@alexandercomms.co.nz

About McGrathNicol
McGrathNicol is an independent advisory firm specialising in corporate advisory, forensic, transaction services and corporate recovery. It is a market leader in Australia and New Zealand, with more than 300 people across the region, including over 30 partners.

17 December 2010

Australian-based Suncorp Group announced that it has today entered into a conditional agreement to sell Guardian Trust to leading Australian independent trustee The Trust Company for NZ$42 million, as part of a focused strategy by Suncorp Life to grow its core life and income protection business in New Zealand.

Guardian Trust is currently part of the New Zealand-based arm of Suncorp Life, which also manages specialist life businesses Asteron and AA Life. 

Suncorp Life New Zealand Managing Director Sean Carroll said that Guardian Trust has been a very important part of Suncorp Life New Zealand to date, and that the decision to sell the trust business to a like-minded trustee parent company is part of its strategy to ensure both Suncorp Life New Zealand and Guardian Trust can continue to grow in their respective industries. 

“Asteron and AA Life, Suncorp Life New Zealand’s flagship brands, are specialists in life and income protection, while Guardian Trust is a trustee company.  Asteron, AA Life and Guardian Trust are all strong performers and are well-placed to pursue growth in their respective markets, and it makes commercial sense to ensure that each is aligned with a parent company which specialises in its respective market“ says Mr Carroll.  “This has been a joint effort and we are all very pleased with the outcome”. 

Mr Carroll confirms that the new owner was selected carefully in order to ensure Guardian Trust is well-positioned to continue its strong performance. The Trust Company is publicly listed and Australia’s largest independent trustee company. There are strong cultural similarities between Guardian Trust and The Trust Company, and both companies are pre-eminent providers of personal and corporate trustee services in their respective markets.

The Trust Company Chief Executive Officer John Atkin said that Guardian Trust’s brand and existing resourcing levels will be maintained, with further investment for future growth in the coming years. “We are delighted to have reached agreement with the Suncorp Group to acquire Guardian Trust, which is widely regarded as the pre-eminent trustee company in New Zealand.  The strong alignment between our respective trustee business models, our similar dedication to client service, our market positions as leading trustees and advocates for our industry and our common heritage makes Guardian Trust an ideal fit”.

John Botica, Managing Director of Guardian Trust, said the purchase was “extremely good news for all parties. This is an exciting opportunity for Guardian Trust and our customers, and one that we have achieved by working closely together with Suncorp Life and The Trust Company”.   Mr Botica will continue as Managing Director of Guardian Trust. 

The conditional sale and purchase agreement was signed today, with the sale process scheduled for completion in the first quarter of the 2011 calendar year.

ends

For more information:

Kate Alexander
Alexander Communications
+64 (0)27 244 6094
kate@alexandercomms.co.nz

 About Guardian Trust

Guardian Trust, with origins dating back to 1882, has been serving New Zealanders for generations and is a market leader in personal and corporate trusts. Through its network of offices Guardian Trust manages approximately NZ$3.3 billion of assets on behalf of some 4,500 trust, estate and agency clients, and provides corporate trustee services for the issue of securities, with over NZ$56 billion under supervision.

 About The Trust Company

The Trust Company is one of Australia’s longest serving financial services companies with over 125 years of experience.  The Trust Company provides a wide range of financial services including:

• Personal Services offering Wealth Transfer Planning, Lifestyle Care, Health & Personal Injury services, Funds Management, Financial Planning, Estates & Trusts administration to intermediaries and the wider retail market.
• Corporate Services offering Property & Infrastructure Custody services, Responsible Entity services, Superannuation Compliance & Trustee services, Structured Finance Trustee services and REIT Trustee services to institutions.
• Philanthropy Services include setting up charitable structures, advice on taxation and charitable vehicles, funds management and assistance selecting charitable projects.

The Trust Company has offices in Sydney, Melbourne, Brisbane, Townsville, Perth and Singapore with over 230 employees and a market capitalisation of approximately A$190 million.

About Suncorp Life New Zealand

Suncorp Life New Zealand manages life risk companies Asteron Life and AA Life.  It has over NZ$1.1 billion of funds under management and looks after the financial protection needs of 203,000 clients.

Suncorp Life is one of Australia and New Zealand’s largest financial service providers with key business activities in life assurance, superannuation savings, funds management and trustee services. A member of the Suncorp Group, Suncorp Life is part of an entity with approximately 9 million customers with over NZ$935 million of life insurance premiums and in excess of NZ$30 billion funds under management.

Most adult New Zealanders with business or personal financial assets to protect should have an Enduring Power of Attorney (EPA), but Guardian Trust’s general counsel Chris Kelly warns that current legislative issues are making it difficult for people to correctly set up an EPA, or easily update an existing one, due to unnecessary red tape. 

There are two types of EPA, one that governs property (assets), and one that governs personal care and welfare. Everyone over the age of 18 should complete one or both to ensure important legal protection for themselves in the event that they are incapacitated and unable to act on their own behalf.

However, Mr Kelly says, despite Enduring Powers of Attorneys being as important, from a legal point of view, as a Will, legislative changes in 2007 mean there is now some disincentive to sign or change an EPA because of more restrictive rules relating to witnessing requirements and the increased costs involved in complying with the new laws.

“We are seeing that the rule changes are causing confusion for clients wanting to set up an Enduring Power of Attorney.  The intention of the reform was to provide greater protection for the person who gives the power of attorney (the donor) and to make sure full advice is given by changing how an EPA is witnessed. This is a fine intention, but it’s made getting an Enduring Power of Attorney a more onerous and expensive legal process.

“The 2007 rules state that the donor’s witness must be independent of their chosen attorney, and that their attorney’s witness must be different from their own. The first issue that has confused people is that the witness can only be a lawyer, a registered legal executive or an approved staff member of a trustee organisation like Guardian Trust – Justices of the Peace, or any other individual, are not authorised to witness the signature of a donor. 

“This means that people have been forced to go to the extra time, trouble and expense of seeking independent legal representation to cover the witnessing requirements. One of the most irksome situations that occurred as a result (and now resolved by the latest amendment) was where a couple wishing to act as each other’s attorney visited a lawyer or trustee company together and then couldn’t have that adviser witness their signatures as donors, since the adviser was no longer considered independent by virtue of having acted for the couple jointly.”

The result, Mr Kelly says, is that some people are leaving old Enduring Powers of Attorneys in place, even if they are no longer appropriate for the circumstances, because it is too difficult to make a new one, while others, who clearly need an EPA, have not signed one due to the added time, cost or general uncertainty.

Mr Kelly says that a partial fix has occurred with the passing of the Protection of Personal and Property Rights Amendment Act 2010 by Parliament in July, but this will only help in some situations. Many problems still remain. “An example of the sort of difficulty that will still arise is where a mother wishes to give EPA authority to her son, but we cannot witness her signature because we did some work for her son some time ago.”

For most people, an Enduring Power of Attorney is as necessary as a Will, and without one, if an individual becomes incapacitated no one has the authority to make decisions regarding their assets or personal welfare. Their family will then be required to apply to the Court for appointment of a manager, an often lengthy, costly and stressful process. 

For anyone wishing to set up an EPA, or change an existing one, Mr Kelly advises contacting an independent trustee company, or a lawyer who works in the trust field. “They will know what the imperfections in the current law are and will advise you on how to counter them in the most time and cost-effective way.”

Ends

For more information:

Stephanie Jones
Alexander Communications
+64 (0)9 522 5542
stephanie@alexandercomms.co.nz

 About Guardian Trust

Guardian Trust, established in 1882, has been serving New Zealanders for generations and is a market leader in trust & estates and wealth management. It is one of New Zealand’s foremost trustee companies in asset management and protection, providing wide-ranging advice and expertise in areas including estate planning and administration, financial planning, and personal and corporate trusts.

The National Business Review’s Niko Kloeten delves into the importance of Wills and setting up an Enduring Power of Attorney and the challenges faced without one, in ‘More Red Tape Putting Businesses At Risk’. 

This subscriber content only story includes an interview with Guardian Trust general counsel Chris Kelly who says the new regulations have put people off and created an unnecessary layer for the EPA process.

Since the law change the number of people getting EPA’s has dropped 90% at Guardian Trust and has left many businesses at risk if no one has been appointed to act behalf of someone. 

Kelly says “Enduring Power of Attorney is an important tool in business continuity – anyone could have a heart attack at any point in their lives.”

This article is restricted to NBR subscribers only.

Guardian Trust is calling for applications from people in the Rotorua region for a share of the gifts bestowed by four late residents, all of whom set up trusts with Guardian Trust for the benefit of the community.

Guardian Trust’s call for grants last year led to the distribution of more than $150,000 from the Francis Moss (FM) Boord Charitable Trust to benefit people in the Rotorua region, including:

• $100,000 to the Rotorua Tree Trust to complete Stage 2 of the Japanese Maple Gully, including upgrading existing tracks, constructing a Japanese-inspired entrance gate and completing the mulching and planting of the gully;
• $10,625 to the Rotorua Public Library for the provision of a new security system for the Don Stafford Room, which houses the rare and historical book collection in the library’s new wing;

Guardian Trust is the trustee for more than 450 charitable trusts, distributing approximately $26 million annually for the benefit of New Zealanders.

In 2009, Guardian Trust is inviting applications for grants from the following trusts:

• The FM Boord Charitable Trust, which was established by Raymond Boord, a former Rotorua Mayor, in memory of his father. It has funds available for charitable purposes in areas including the development of public reserves and domains and the purchase of historically significant books, documents and artworks for housing in the Rotorua public library, museum or art gallery.
• The Eric Hattaway Bridgman Trust Fund, which was established by Dr Bridgman, a superintendent at the Rotorua Hospital for 30 years. It has funds available for the benefit of charitable, educational, cultural and benevolent institutions and organisations operating in the Rotorua district, in Te Whaiti, Murupara and Ruatahuna, and for members of the Arawa iwi and their descendants, wherever they reside. In the past 10 years, the Trust has distributed some $170,000 in the Rotorua community.
• The Gordon Bartleet Charitable Trust, which has funds available for the benefit of Protestant, charitable, public, educational and benevolent institutions in Rotorua.
• The Rita Colleen Cave Estate Charitable Trust, which has funds available for the benefit of children under 16 who require overseas medical treatment to resolve life-threatening situations.

Guardian Trust Client Manager Cristel Tapoki said, “These four trusts were set up by good, hard-working New Zealanders who were passionate about Rotorua and its local community, and were committed to their particular causes. Mr Boord and Dr Bridgman did a great deal for the Rotorua community during their lives, and it’s wonderful to see their work continuing beyond their life-spans to benefit people in the region, as they wished.

“It’s a great example of how effective trusts can be in ensuring your wishes and instructions are carried out in perpetuity, when they are set up and operated correctly.”  

Ms Tapoki said applicants would need to provide details on how the money would be used, their accounts and the constitution of their charity or organisation. All applications will be assessed on their merit.

Those interested in more information about any of these trusts may contact Guardian Trust by email on web.rotorua@nzgt.co.nz, or call 07 349 4530.

 ends

Photo: The Rotorua Tree Trust distribution: From left, solicitor and advisory committee member of the FM Boord Trust Richard Pryce, Guardian Trust Client Manager Cristel Tapoki and Rotorua District Council Deputy Mayor and Chairperson of the Community, Parks and Recreation Committee Trevor Maxwell.

For more information:

Stephanie Jones
Alexander Communications
+64 (0)9 522 5542
Stephanie@alexandercomms.co.nz

Cristel Tapoki
Guardian Trust
+64 (0)7 349 3528
cristel_tapoki@nzgt.co.nz

About Guardian Trust

Guardian Trust has been serving New Zealanders for more than 125 years and is a market leader in wealth management. It is one of New Zealand’s foremost trustee companies in asset management and protection, providing wide-ranging advice and expertise in areas including estate planning and administration, mortgage finance, financial planning, and personal and corporate trusts.

Colleen Buist, manager of Guardian Trust, Auckland Central does Q&A with www.nzherald.co.nz  in an article about investing during a recession … more

In an article in grownups.co.nz,  Mr Kelly says the appeal of family trusts endures, with the number of New Zealanders setting up a family trust continuing to rise. The last available statistics from the Reserve Bank indicate that by 2001 nearly half of all couples with a combined income of $200,001 or more had a trust. Fundamentally, he says, trusts serve New Zealand families well if they are set up correctly and run professionally – and if no one is attempting to cheat anyone else … more