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For many Kiwi families and business owners, using a trust to hold property has been a smart way to protect wealth and support long-term financial goals. But the current anti-money laundering (AML) rules in New Zealand have added a high level of extra bureaucracy to the process of selling a house that’s held in a trust.
In a move to simplify the process, the Government has announced plans to simplify the AML due diligence process for low-risk trust property sales — aiming to remove unnecessary admin while still managing genuine risk.
What’s Changing?
Until now, selling a trust-held property required your real estate agent to collect extensive information, including:
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Names and addresses of all beneficiaries, including children and legal advisers
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Documentation showing how the property was originally paid for
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Copies of the full trust deed and ID verification for all trustees
The New AML Rules
Under the changes announced by Associate Justice Minister Nicole McKee, real estate agents will now be able to apply simplified due diligence when the property sale is clearly low risk.
That means they’ll only need to:
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Check that the trust’s ownership details match the certificate of title
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Verify the identities and trustee roles of those involved
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Retain a copy of the trust deed
Guidance for real estate agents, lawyers and accountants is expected to follow soon.
What This Means for You
If you’re looking to sell a property that’s held in a family trust or thinking about setting one up, now’s a good time to talk with us.
We can help you:
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Understand how these AML updates apply to your situation
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Review the structure of your trust and property ownership
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Navigate the compliance process and avoid surprises during the sale
Whether you’re planning ahead or already on the market, we’re here to help make the process smoother and more informed.
Get in touch with our team today if you’d like to chat about your trust, AML requirements or what these changes mean for your next property move.
