If you’re not sure what type of trust you’re dealing with, this law helps you figure it out. It says that a trust is called a ‘non-complying trust’ if it’s not a complying trust and it’s not a foreign trust. This is important when the trust gives out money or property, which is called a distribution.
You can think of it like this: if the trust doesn’t follow all the rules to be a complying trust, and it’s not from another country (which would make it a foreign trust), then it falls into this special category called a non-complying trust.
Remember, trusts are ways to hold and manage money or property for people. This law helps sort out which rules apply to different kinds of trusts.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517280.
A trust is a non-complying trust in relation to a distribution if it is neither a complying trust nor a foreign trust.
non-qualifying trust
