Family Trusts and Gifting Assets
If an individual gifts more than $12,000 in any 365 day period then they legally have to notify the IRD of the gift using IRD form IR196. An individual can gift up to $27,000 per year and not incur any gift duty liability.
|value of Gift||Duty Payable|
|0 to $27,000||NIL|
|$27,001 to $36,000||5% of value over $27,000|
|$36,001 to $54,000||$450 plus 10% of value over $36,000|
|$54,001 to $72,000||$2,250 plus 20% of value over $54,000|
|Over $72,000||$5,850 plus 25% of value over $72,000|
The original gift is acknowledged by "Deed of Acknowledgement of Debt". Each year this original debt is reduced by gifting. The IR196 form is completed together with a "Deed of Partial Forgiveness of Debt" and sent to the IRD.
We also recommend that you keep an 'Asset Schedule' so that you can easily identify a history of gifting and any new funds added to your trust.