Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Definitions and related matters - Associated persons and nominees - Table Y1: Associated person rules

YB 7: Two trustees with common settlor

You could also call this:

“Trustees of different trusts created by the same person or their partner are associated”

When someone creates a trust, they are called a settlor. If you are a trustee of one trust and someone else is a trustee of another trust, you and the other trustee are considered associated persons if the same person created both trusts.

For this rule, if two people are married, in a civil union, or in a de facto relationship, they are treated as if they are one person. This means if your spouse creates two trusts and you are the trustee of one while someone else is the trustee of the other, you and that other trustee are still considered associated persons.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523012.

Topics:
Money and consumer rights > Taxes
Previous

YB 6: Trustee and beneficiary, or

“Trustees are connected to trust beneficiaries, except for land-related rules”

Next

YB 8: Trustee and settlor, or

“Settlors and trustees are considered connected, except for tax charities”

Part Y Definitions and related matters
Associated persons and nominees: Table Y1: Associated person rules

YB 7Two trustees with common settlor

  1. A trustee of a trust and a trustee of another trust are associated persons if the same person is a settlor of both trusts.

  2. For the purposes of this section, 2 persons who are married, in a civil union, or in a de facto relationship are treated as the same single person.

Notes
  • Section YB 7: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).