Plain language law

New Zealand law explained for everyone

HC 11: Foreign trusts
or “Rules for trusts set up by people living outside New Zealand”

You could also call this:

“Definition and classification of trusts that don't meet specific legal requirements”

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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