Who is the settlor?
The settlor is fundamentally the one who creates the trust. The trust is created by a settlor that gives a settlement (of inherent value) to trustees to hold in trust for beneficiaries. Once the settlor has assigned the settlement over to the trustees’ control, the settlor releases control of those trust assets. The settlor may issue a non-binding Letter of Wishes to the trustees for guidance. Under New Zealand tax law, the taxation status of a trust is wholly determined by the residence of the Settlor. If the Settlor is a non-resident of New Zealand, then the trust is defined as a foreign or offshore trust for tax purposes. However, any person who subsequently gifts property, or sells property below current market value, or makes a no interest loan to the trust even after the trust has been settled will also be deemed a Settlor under New Zealand tax law. Designer Asset Management has a very good relationship with a charitable foundation in Panama. The foundation is pleased to provide
