LawWorks News

Gift Duty abolished - September 2011

The legislation has now been passed to abolish gift duty from 1 October 2011.  This presents an opportunity for clients who are currently on a gifting programme to complete that programme with immediate effect and for clients who are considering transferring assets to trusts or making gifts outright to friends or family members to take the opportunity to make those gifts without incurring gift duty.  

We will be contacting all our clients who are currently on a gifting programme with us to discuss their options.  If you are not on a gifting programme but would like to discuss this matter please do not hesitate to contact us.  

While assets can be gifted with immediate effect the law currently provides a number of ways in which gifts can be reversed, for example in the case of bankruptcy or where a gift is made to avoid paying creditors.  We will therefore be recommending that clients take a cautious approach before deciding whether to gift assets immediately in order to carefully consider the implications and this may require consultation with the client’s accountant.
 
If you would like more information regarding the above advice please contact Tony Walker, Partner on 303 9916, email: tony@lawworksnz.com  or Sarah Edmondson, Associate on 303 9915, email sarah@lawworksnz.com

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