Why Every NZ Business Owner Should Consider a Family Trust in 2025–26
In today’s economic climate, New Zealand business owners and investors are becoming increasingly aware of the importance of safeguarding their assets and planning for the future. One strategic tool that continues to stand the test of time is the family trust. As we move through 2025–26, the relevance of trusts in asset protection, tax planning, and succession management has never been greater.
What is a Family Trust?
A family trust is a legal structure that holds and manages assets on behalf of beneficiaries, typically your family members. Once assets are transferred to the trust, they are legally owned by the trust, not by you personally. This separation provides a level of protection from claims against you as an individual — including from creditors, business risks, or even relationship property claims.
Asset Protection in a Risky World
For business owners, liability is part of the game. But your personal wealth doesn’t have to be on the line every time your business faces a financial hiccup. A family trust can shield your personal assets, including your home, investment properties, or savings, from potential business debts and lawsuits.
This becomes especially important if you're in a high-risk industry or operate as a director in multiple ventures. If things go wrong, having assets in a trust can prevent them from being caught in the crossfire.
Succession Planning & Wealth Transfer
Planning how your wealth and business will be passed on is critical. A family trust allows you to control the transfer of assets to future generations while avoiding disputes and delays in the process. It can ensure your children or other beneficiaries are looked after according to your wishes, especially if they are young or financially inexperienced.
Unlike a will, which becomes public after your death, a trust can offer greater privacy and protection over your estate.
Long-Term Tax Efficiency
While family trusts are not a way to “avoid” tax, they can be used strategically for tax planning, especially when dealing with investment properties, dividends, or capital growth assets. Trust income can be distributed among beneficiaries — often at lower marginal tax rates — helping reduce overall tax liabilities over time.
However, it’s essential to manage the trust correctly, comply with Inland Revenue’s rules, and seek professional advice. Trusts are under increased scrutiny in NZ, and poor setup or maintenance can lead to issues.
When Should You Set One Up?
If you:
Own a business
Hold valuable personal or investment assets
Have a blended family
Want to control how your wealth is transferred to future generations
…then it’s time to consider setting up or reviewing a family trust.
Next Steps
At Tax Professionals, we work closely with legal experts to help you determine whether a family trust is right for your situation. We’ll help you weigh the benefits, ensure the structure aligns with your financial goals, and manage it in compliance with current tax laws.
Protect what you’ve built. Plan for tomorrow. Talk to our team today.
📞 Call 09 625 0035
🌐 Visit www.taxprofessionals.co.nz
📩 Or message us to schedule a trust consultation.