What are trusts and estates
Trustees of a trust hold money or property for the benefit of its beneficiaries or for law purposes. Estates are a person’s assets after they have died. Both trusts and estates are taxed on the income they generate.
Foreign trusts with New Zealand resident trustees
We refer to foreign trusts with one or more New Zealand resident trustees as New Zealand Foreign Trusts (NZFTs). For information about registering NZFTs with us, guidance and ongoing disclosure and return processes, see our international section about foreign trusts.
Foreign trusts with New Zealand resident trustees
Tax summary
Trusts often have money or property that's used as an investment to earn revenue. This revenue becomes the trust’s income as it's earned. The initial settlement on the trust is not income for tax purposes.
Estates can continue to earn money after a person has died.
Income tax for trusts and estates
Reporting the final income
From the tax year ending 31 March 2023 an executor will need to decide if any reportable income received in the 28 days following death, is included in either
- a final income tax return for the individual
- a return for the estate.
Otherwise, estate income generally follows trust tax rules.
For further information refer to the IR288 Guide - Trust and estate income tax rules
Filing trust returns
File an IR6 trust or estate income tax return
Additional reporting requirements for NZ domestic trusts