Resigning as a Trustee

Trustees are personally liable for the tax obligations of the trust. If a trustee resigns as trustee of a trust they must let the IRD know in writing, as soon as possible following the resignation, so that their records can be updated.

If a trustee resigns and doesn’t let inform the IRD, they will still be recognised as a trustee which makes them liable for any tax obligations of the trust. They will remain recognised as a trustee until the IRD receive written confirmation.

For income tax and GST purposes, a trustee may be liable for any outstanding tax for the periods they were a trustee. This includes the period of time between their resignation and the IRD receiving confirmation of the resignation. This liability continues until the debt is paid.

If you are resigning from a trust, please contact the team for assistance.