The Benefits and Challenges of Trusts
13 April 2025

How an Independent Professional Trustee Could be of Assistance

Trusts have long been a popular tool for managing and protecting assets. They offer various benefits, especially for those who own their own business or want to ensure their assets are protected. However, there are also some drawbacks to consider. Here, we'll explore both the benefits and the cons of setting up a trust, helping you decide if it's the right option for you. 

 

Benefits of Trusts 

  1. Asset protection: Trusts are particularly beneficial for business owners, as they protect personal assets from business risks and creditors. By placing assets in a trust, you can shield them from being drawn down to pay personal debts or from relationship property claims. This ensures that your personal wealth remains secure, even if your business faces financial challenges. 
  2. Tax efficiency: Depending on your situation, trusts can offer tax efficiencies. However, it's essential to speak with an accountant to understand how a trust can impact your tax obligations. A well-structured trust can help minimise tax liabilities and maximise the benefits for your beneficiaries. 
  3. Estate planning: Trusts play a crucial role in estate planning. They ensure that your assets are distributed according to your wishes after your passing. However, it's essential to consider if other instruments like wills, enduring powers of attorney (EPOAs), or specific ownership structures might be better suited for your needs. 
  4. Serving certain family dynamics: Trusts can be tailored to serve specific family dynamics, ensuring that assets are retained for family members who may need them the most. This includes providing for those with disabilities, rest home care, or hospital care. A trust can help ensure that your loved ones are cared for, even if you are no longer around. 


Cons of Trusts 

  1. Loss of control of assets: When you set up a trust, the assets are no longer considered your personal assets. They belong to the trust, and the trustees have decision-making control over them. This means you need consensus decision-making from all trustees, and the assets are governed according to the powers outlined in the trust deed. 
  2. Ongoing administration and costs: Trusts require ongoing administration, including maintaining records, fulfilling disclosure obligations, filing tax returns, and complying with legal requirements. This can be time-consuming and costly, which might be a downside unless there is a good reason for having a trust. 
  3. Tax implications: While trusts can offer tax efficiencies, they also come with tax implications. It's essential to understand these implications and seek professional advice to ensure compliance with tax laws and regulations. 
  4. Legal challenges: If a trust is not administered properly, it can face legal challenges. This can result in disputes among beneficiaries or questions about the validity of the trust. Proper administration and adherence to legal obligations are crucial to avoid such issues. 


Independent Professional Trustees  

Appointing an independent professional trustee such as accountants or lawyers (including one of Willis Legal’s Trustee Companies) for your Trust can offer several desirable benefits.


Such benefits include: 

  1. Transparency and Independence: Appointing an independent trustee can ensure that the trust’s assets are managed, and decisions affecting assets are made, in a totally independent manner. This gives the Trust integrity and can provide beneficiaries with peace of mind. This can be particularly important when family or business dynamics are complex or strained. Independent trustees can also help to avoid or negate any perception of a ‘sham trust’. 
  2. Stability over time: Private trustees might lose their ability, willingness or capacity to act as trustee over the life of the Trust. However, professional trustee companies provide longevity, consistency and stability. The costs of retiring trustees unable or unwilling to act and appointing new trustees can be reduced, particularly over time. 
  3. Knowledge and expertise: Professional trustees hold the up-to-date and best practice information on New Zealand Trust legislation. This knowledge and expertise encourages strong compliance with the Trusts Act 2019 as well as proper administration and record-keeping.  The knowledge and advice gained from having a professional trustee included can assist other trustees with decision-making regarding the trust’s assets and administration. 


Overall considerations 

When deciding whether to create a new trust, it's essential to have a specific and good reason. One of the benefits listed above should outweigh the cons. It's also crucial to speak with a lawyer to assess if a trust is the right vehicle to achieve your objectives and tailor it to your individual circumstances. For example, transferring assets into a trust could potentially affect your eligibility for residential care subsidies. Therefore, professional advice is vital before making any decisions in relation to trusts. 


We encourage settlors (creating a new Trust) or continuing trustees who are appointing any new Trustees, to consider whether an independent professional trustee might be beneficial. As outlined above, there can be significant advantages to having an independent professional trustee included.


Willis Legal provides its own independent professional trustee service, ask about it today.


If you believe that creating a Trust might be of benefit to you, your family or business and/or if you are interested in including an independent professional trustee – please do not hesitate to contact one of our friendly staff and we would be happy to discuss this with you in further detail.   

Join our Newsletter

Stay tuned

Contact Us

11 September 2025
In the fast-moving and constantly evolving legal landscape, depth of legal knowledge and long-standing experience remain cornerstones of exceptional service. At Willis Legal, we believe that longevity - both within individual careers and across the life of a firm - is not just an advantage but a profound asset that distinguishes meaningful legal practice from mere process. With over 135 years of history, Willis Legal has grown from its roots in Napier to become a trusted legal partner across Hawke’s Bay. Founded in the late 1800s, the firm has continued to grow and evolve throughout its life, culminating in the multi-branch, modern law practice Willis Legal is today. This growth reflects not just strategic expansion, but a deep commitment to serving our community with integrity and care. That legacy is also personal. Lawrie Willis , a longstanding partner, represents the third generation of his family to practise law at the firm. Mark Goodson , another senior (but extremely young-looking) partner, continues the legacy of his late father, a former partner, Brian. Other family ties, including Kevin Callinicos , previously a partner but now a consultant, and his daughter, Vicky and son, John (both solicitors) have helped shape the firm’s culture of continuity and trust. Over the years, Willis Legal has also produced three High Court Judges (Justice Woodhouse, Justice Gallen, and Justice Chisholm) and a District Court Judge (Judge Neal), underscoring the calibre of legal minds nurtured within our walls. Legal knowledge gained through years of practice is more than just technical proficiency. It’s the accumulated wisdom of navigating ambiguity, resolving complex disputes, and anticipating challenges before they arise. Experienced lawyers bring insight that no textbook or single case can teach. They’ve seen the ripple effects of legislative changes, the ways precedent shifts, and how context shapes outcomes. This insight allows them to offer strategic clarity in moments when the stakes are high, and the path unclear.Whether we’re advising on property transactions, family matters, or complex commercial negotiations, we draw on long-standing knowledge to craft solutions that are practical and enduring. Experience also builds trust. Clients often come to us in moments of vulnerability - seeking support through family breakdowns, financial uncertainty, or legal conflicts. Knowing that their lawyer has walked this path with many before them instils confidence. It reassures them that the advice they receive is grounded in more than theory; it’s been tested, refined, and proven. In a field where outcomes can profoundly affect lives, trust in your legal advisor is indispensable. As longstanding partner Lawrence Willis puts it: “Legal knowledge is important, but it’s the experience behind it that gives it weight. Clients don’t just want answers - they want assurance that those answers come from someone who’s seen the terrain before and knows how to guide them through it.” That ethos extends to our investment in the future. Willis Legal is proud to support young lawyers and legal executives, regularly hiring graduates and summer clerks, and fostering a culture of mentorship. Seasoned lawyers become anchors for younger colleagues, passing down knowledge that helps maintain high standards across generations. Even as we explore emerging technologies, and how we can best use them for our clients (including AI and digital tools), our core values of integrity, clarity, and client focus remain intact. In essence, the depth of legal knowledge and long-standing experience are what turn legal representation into legal guidance. At Willis Legal, we honour this legacy - drawing on years of practice not just to resolve issues, but to educate, empower, and protect our clients with precision and heart.
11 August 2025
At Willis Legal, longevity isn’t just measured in years - it’s felt in relationships, remembered in shared milestones, and seen in the steady rhythm of daily practice. Few reflect that spirit more than Lawrence (Lawrie) Willis and Janine Blockley , whose decades of service are woven into the fabric of the firm itself. Lawrence Willis Known to many as Lawrie, he is a cornerstone of the Hawke’s Bay legal community - and part of a three-generation legacy at Willis Legal. His family’s long-standing connection to the firm runs deep, reinforcing a personal commitment to its values, evolution, and enduring presence in the region. Lawrie obtained his Bachelor of Laws from Victoria University before joining the family firm then known as Willis Toomey Robinson in 1983. Since becoming a partner in 1989, he has guided the firm through structural and strategic change (the use of personal computers, online property registration and much more), leading Willis Toomey Robinson through mergers with local Hawke’s Bay firms, including Scannell Hardy & Co, Donkin Lloyd (Napier Law), and Taradale Law, and now serving as both partner and owner at Willis Legal. Over the years, he’s seen the pace of legal practice shift dramatically, especially in how we communicate. From fax machines to email, mobile phones, and digital platforms, each advancement has brought greater speed, and with it, greater pressure. Despite all that change, Lawrie says the highlight of his time at Willis Legal has always been the people, both the team and the clients. It’s the relationships, the shared history, and the trust built over time that continue to make the work meaningful. “Legal knowledge gets you to the issue - but it’s experience that guides you through it. Clients want more than technical answers; they want assurance those answers come from someone who’s seen the terrain, understands its patterns, and knows how to lead with confidence and care. We learn from our experiences, good and bad and bring them to play in every decision we make.” Lawrie’s breadth of legal knowledge from his years of practice sees him mentoring younger lawyers on how to navigate practice and the changing legal world, or offering seasoned guidance, and often a shared history, to clients. Janine Blockley Janine joined the firm in 1981 at just sixteen, beginning as an office junior in the accounts department - back when receipts were handwritten in carbon books and the phones lit up like a switchboard. Over the next 44 years, she held roles across departments, from search and registration to reception, and eventually settled into secretarial support. Her story tracks not just the firm’s history - Robinson Toomey & Partners > Willis Toomey Robinson > Willis Legal - but the pace of legal practice itself: from mini cassette tapes to modern cloud-based systems. Through it all, Janine remained constant, supporting teams, remembering clients and family histories, and quietly keeping the engine of the firm humming. “The thing that keeps me here is the staff - they’ve always felt like family. I’m now the longest-standing member and going for the record… if AI doesn’t take my job first!” Together, Lawrie and Janine represent two facets of enduring excellence: one leads with legal depth and strategic foresight, the other sustains culture, continuity, and client connection. In an industry where change is constant, they prove that relevance doesn’t just come from reinvention - it grows from reliability, care, and long-held trust. At Willis Legal, we’re proud to honour their legacy - and the values it continues to inspire.
30 July 2025
Legal issues can be overwhelming - especially when you’re unsure how to afford the help you need. That’s where Legal Aid comes in. It’s a government-funded programme that helps people access legal advice and representation when they can’t afford it on their own. At its heart, Legal Aid is about fairness: ensuring that everyone has the opportunity to be heard and supported, no matter their financial circumstances. What is Legal Aid? Legal Aid is a grant from the government to assist people who would not otherwise be able to afford legal services pay for a lawyer. Legal Aid is not available for every legal issue - for example, it generally doesn’t cover wills, conveyancing, or commercial disputes - but it can be a vital support for those dealing with serious or stressful situations. At Willis Legal we provide Legal Aid for certain family matters, such as parenting disputes, protection orders and some disputes involving housing or debt. Who can get Legal Aid? Legal Aid is means-tested, which means your income and assets will be assessed to determine whether you qualify. The thresholds vary depending on your circumstances - for example, whether you have dependents or a partner. Even if you earn above the threshold, you may still be eligible for partial Legal Aid, or be asked to repay some of the costs over time, depending on your situation. As of July 2025, a single person with no dependents may qualify if they earn under $28,984 per year, while someone with a partner and two children may qualify if their household income is under $73,608. How do you apply? For family matters, we can help you complete the application. You’ll need to provide: proof of income (eg payslips or benefit statements); details of your assets (eg savings, property, vehicles); and information about your living situation and dependents. Common misconceptions There are a few misunderstandings about Legal Aid that are worth clearing up: It’s not just for criminal cases. Many people don’t realise Legal Aid is available for a wide range of family and civil law matters. It doesn’t mean “free lawyer” in every case. Depending on your financial situation, you may need to repay some or all of your Legal Aid over time. Legal debt may be secured against any property, taken from any proceeds of your case, or you may be required to make weekly repayments, depending on your situation. You can choose your lawyer. If a lawyer is approved to take on Legal Aid work, and agrees to act for you, you can ask for them specifically. You must update your details. If your income or assets change, you need to let Legal Aid Services know - otherwise, your eligibility could be affected. Why experience matters Applying for Legal Aid and working through a legal issue with the support of that system can be complex. That’s why it helps to work with a legal team who understands the process - and can guide you through it clearly, compassionately, and efficiently. At Willis Legal, we’ve supported many clients through the Legal Aid process - and we’re here to make sure you feel informed, empowered, and well-represented every step of the way. Need help? Let’s talk If you think you might qualify for Legal Aid - or you’re unsure where to start - we’re here to help. Our team can walk you through your options and support you in applying. Because everyone deserves access to justice.
Show More