16 April 2021
April 2021 – Issue 166
Kia ora koutou
In this edition, we feature news about:
- Cadastral Survey Rules 2021 webinars
- Transmission of trust property when a surviving trustee is incapacitated
- Ensuring your Landonline account has a system manager
- New tax law comes into effect
- Landonline password minimum length increased
Cadastral Survey Rules 2021 webinars
The Surveyor-General plans to publish the Cadastral Survey Rules 2021 in early May, with a go live date of 30 August 2021. We will also be publishing a document that explains the transition arrangements and the significant changes to the rules.
As part of this release, we will be holding webinars to explain the transition arrangements and the changes to the rules that will affect field work.
We have scheduled the webinars for 12 and 13 May 2021. The sessions will be recorded for those who are unable to attend.
A second series of webinars in August 2021 will cover changes for surveyors’ office work and Landonline.
Read more about the August launch in March Landwrap
Transmission of trust property when a surviving trustee is incapacitated
The Registrar-General of Land (RGL) recently considered a case of three trustee owners where one trustee had died and another was incapable of performing their functions and had been removed as a trustee. To change the ownership of trust property on the register, it was necessary to register the transmission to the surviving trustees as well as the transfer by the surviving trustees to the sole remaining capable trustee.
The RGL concluded the capable trustee can complete the requirements to register the transmission on behalf of the incapable trustee, under section 118(2) of the Trusts Act 2019, on the basis that registering the transmission is a formal requirement that is necessary, along with registering a transfer, to complete the divesting and vesting of the trust property on removing the incapable trustee under ss 116 & 117 of the Act.
Therefore in this circumstance the remaining trustee can sign the Authority and Instruction (A & I) form on behalf of the former trustee and for themself, authorising registration of both the transmission by survivorship and the transfer. The following evidence must be retained with the A & I form:
Supporting both the transmission by survivorship and the transfer:
- A copy of the executed document of removal of the incapable trustee.
- A statutory declaration by the remaining trustee that the document was validly executed (a suitable form can be found on our Trusts Act 2019 information page).
Supporting the transmission by survivorship:
- A certified copy of the entry in the Register of Deaths for the deceased trustee.
- A statutory declaration by the capable surviving trustee covering the usual statements for transmission by survivorship, and also stating that the other surviving trustee is incapable.
(A single statutory declaration by the remaining trustee covering both the execution of the document removing the incapable trustee and the death of the other trustee will also be acceptable.)
Ensuring your Landonline account has a system manager
A system manager is now a compulsory role for all Landonline accounts. If your account does not have a system manager, one needs to be assigned by 28 April 2021.
The role is now compulsory for all Landonline accounts after a change in the Landonline terms and conditions.
This role will give you greater control over your account details and user privileges. The system manager must be a Landonline user and can perform a variety of administrative functions within Landonline, including maintaining firm details and managing users associated to the account.
To help ensure all accounts meet this requirement we are emailing all account holders who do not have a system manager assigned.
Please note the trusted contact role remains unchanged.
New tax law comes into effect
The Taxation (Annual Rates for 2020-21, Feasibility Expenditure, and Remedial Matters) Act 2021 received Royal Assent on 30 March and came into force the same day.
As well as enacting several tax changes, the Act amends the Land Transfer Act 2017 (LTA) by providing that a tax statement must contain the prescribed information. This means that tax information requirements can be prescribed in regulations, rather than in the LTA itself.
There will not be any immediate change in practice as the transitional provisions provide that existing tax information requirements continue to apply until regulations are made.
The LTA is also amended to allow LINZ to share tax information directly with Stats NZ. Stats NZ already receives this information from Inland Revenue to prepare the quarterly property transfer statistics reports, but the amendment will avoid double handling of information.
Landonline password minimum length increased
The minimum password length in Landonline has been increased from eight to 10 characters to meet security standards.
This will not affect your existing password and it will only take effect when your password expires or is reset.
We strongly recommend that whenever you reset any password, you make it as long as possible.
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