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Income Tax Act 2007

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

YB 9: Settlor and beneficiary

You could also call this:

“Trust creators and their beneficiaries are considered connected”

If you create a trust, you are called a settlor. You are considered to be associated with anyone who has received benefits from the trust or could receive benefits in the future. These people are called beneficiaries.

This rule about settlors and beneficiaries being associated doesn’t apply when dealing with land-related parts of the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523016.

Topics:
Money and consumer rights > Taxes
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YB 8: Trustee and settlor, or

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

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YB 10: Who is a settlor?, or

“A settlor is someone who sets up or contributes to a trust, with some exceptions”

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

YB 9Settlor and beneficiary

  1. A settlor of a trust and a person who has benefited or is eligible to benefit under the trust are associated persons.

  2. This section does not apply for the purposes of the land provisions.

Notes
  • Section YB 9: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).