Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
YB 9: Settlor and beneficiary
or “Trust creators and their beneficiaries are considered connected”
You could also call this:

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

For the purpose of understanding who is connected to a trust, you need to know who a settlor is. A settlor is someone who sets up or contributes to a trust. The exact meaning of a settlor is explained in section HC 27. However, there’s one important exception: if you provide services to a trust for less than what they’re worth in the market, you’re not considered a settlor. This definition of settlor is used in sections YB 7 to YB 9, which talk about how people can be associated with trusts.

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 It might be out of date or be missing some parts.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

Next up: YB 11: Trustee and person with power of appointment or removal

or “Rules for trustees and those who can appoint or remove them”
Next

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

YB 10Who is a settlor?

  1. For the purposes of sections YB 7 to YB 9, settlor has the meaning set out in section HC 27 (Who is a settlor?) but does not include a person who provides services to a trust for less than market value.

Notes
  • Section YB 10: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).