Whnau Trusts: Questions and Answers

1. What is a whnau trust?

A whnau trust is a legal structure of ownership for Mori freehold land interests and Incorporation shares provided for under Te Ture Whenua Mori Act 1993 (the Act). It is proposed that this hui of the descendants of Taringa Anihana establish a whanau trust in respect of Taringas interests in Waihou A2A1.

2. What are the benefits of forming a whnau trust?

When a whnau trust is formed it exists forever. No further succession takes place. Whnau trusts provide land owners with a legal structure that prevents shares becoming smaller over the coming generations.

3. Who will own Taringas interests in Waihou A2A1 in a whnau trust?

Once Taringas interests are vested in a whnau trust, no one owns the interests. These are vested in the trustees of the whnau trust. The trustees of a whnau trust must deal with the interests in a manner that benefits all the beneficiaries of the trust and complies with the trust order. The beneficiaries of a whnau trust are generally all the descendants of the Taringa, right down to the newest baby born into the whnau. The trustees of the trust must ensure that they treat all beneficiaries equally and fairly, and keep them informed of dealings, meeting as required by the trust deed.

4. How is a whnau trust formed?

An application to form a whnau trust is filed with the Mori Land Court (the Court), and the matter is then set down before a Judge at a Court hearing. If the Court is satisfied that those making the application have completed all the steps required, the application will be allowed. There is a filing fee of $62.30 when an application is made to the Court.

5. I want to form a whnau trust. What steps do I need to take before making an application to the Court?

All whnau trust applications must have:

draft trust order, signed owner consent witnessed by an appropriate person. and signed trustee consent(s) witnessed by an appropriate person.

6. What is included in a draft trust order?

The draft trust order is the document that details the rules that will govern the trust. Each draft trust order must state the proposed name of the whnau trust and the tupuna of the whnau trust. You can name a whnau trust anything you like, but the tupuna of a whnau trust must be chosen with care, as all the descendants of the specified tupuna will generally be the beneficiaries of the trust. Alterations can be made to the draft trust order to suit requirements, including limited beneficiaries clauses. It is proposed that any whnau trust created in respect of Taringa Anihanas interests be named the Taringa Anihana Nehua-Bryers Whanau Trust.

7. Who can be a trustee?

Anyone can be a trustee for the whnau trust, provided they meet the requirements of the governing legislation.

Trustees must be nominated and agree to being appointed. Before they consent, the prospective trustee should be aware of the duties and responsibilities required in the position. Each trustee must agree with the final draft trust order. 8. Once the whnau trust has been formed, what other steps need to be taken? When/if income is derived from Waihou A2 A1 and distributed to the owners of the block (one of whom will be the whnau trust), there will be a requirement to account for income and tax. However, that is not the case presently. This question doesnt need to be further considered until/when this does become the case.