Your Family Trust may require an IRD number
This article was written by Eloise Toner.
The Land Transfer Amendment Act 2015 which came into force on 1 October 2015 requires lawyers and conveyancers to collect certain tax information from both Vendors and Purchasers prior to the transfer of land. The new rules require Vendors and Purchasers to provide their IRD numbers, except in certain circumstances. There are currently no exceptions to this rule for trusts, and therefore a trust will require an IRD number to complete a transfer of land.
This means that even if your trust only owns your family home, it will now be required to register for an IRD number prior to transferring that property.
If you are planning on transferring land to your trust, or buying or selling property in the name of your trust in the future you may wish to register for an IRD number as soon as possible. You can apply for an IRD number for your trust using the IR 596 form available on the IRD website. You will need to have copies of the Trust Deed, any Deeds of Retirement and Appointment of New Trustees and the personal IRD numbers of all Trustees of the Trust.
It is important to apply for an IRD number for your Trust before you enter into an Agreement for Sale and Purchase. If you are unable to settle due to a delay in getting an IRD number the penalty provisions of the Agreement may be invoked.
We are here to help, so please feel free to contact us if you have any queries or require assistance in applying for an IRD number.