Interview: Tammy McLeod, Davenports Harbour Lawyers
Put your TRUST in TAMMY
If you need help with establishing – or fixing – a trust, then you probably need to talk to Tammy McLeod, from Davenports Harbour Lawyers. Tammy is arguably the most knowledgeable Trust Law specialist North of the Harbour Bridge. You may have heard her recently advocating her innovative ‘Fix My Trust’ initiative on the radio. With significant changes about to happen to Trust Law – apparently the biggest in 120 years – The Business Channel’s Aidan Bennett went to see Tammy at her Albany base for all the answers.
Davenports is a name that has been prominent in North Shore and North Harbour business circles for over 20 years. Originally based in Takapuna, the firm moved to the North Harbour Industrial Estate at Albany 11 years ago. It is now run by three partners, prominent North Harbour lawyer Derek Dallow, franchising specialist Scott Goodwin and trust guru, Tammy McLeod.
Tammy McLeod first worked for Derek Dallow at Davenports when she left University during the 1990s. She departed after two years for a job at large central city law firm Russell McVeagh, where she worked for one of the top trust lawyers in the country for five years.
“The experience I gained at Russell McVeagh was a crucial period in my development as a trust lawyer,” says Tammy. “It confirmed to me that Trust Law was what I wanted to make a career out of and in the process I was able to learn from one of the best in the business. The experience was invaluable.”
The desire to work back closer to home on the Northern side of the bridge remained, however, so eventually Tammy returned to specialise in Trust Law with Derek Dallow at Davenports.
“I did enjoy my initial stint with Derek so when the opportunity arose to move back I jumped at the chance, and seven years on I am thrilled I made that decision.”
Tammy returned in 2004, was made a partner in the firm in 2006 and has grown the Trust book from 300 through to 1100. As a result Davenports Harbour is now recognised as one of the leading Trust firms in the country.
“The growth has been phenomenal,” adds Tammy McLeod. “The period from 2004 through to 2007 was a fairly buoyant one, which had a big effect on growth, but our customers do appreciate the fact that we are a practice that truly specialises in this area and it is not just an add-on. We have two lawyers and two legal executives totally dedicated to Trust Law. The North Shore and North Harbour area is also one of the most prosperous in the country, so the requirement for trusts is higher here than in many other parts.”
“I find what I do very rewarding as it is a constructive process of helping people and providing protection. We are helping to enhance people’s lives, and asset bases, and in the process getting to know the families. It is much more personal than other parts of law.”
So in a nutshell, what are the changes to Trust Law that are coming in from October 1st, 2011?
Tammy McLeod explains. “From October 1st, New Zealanders will be able to gift everything into a trust, regardless of amount, without having to pay gift duty. Previously, any gift to the trust of over $27,000 attracted gift duty tax. This very much fits in with the Government of the day’s desire to give the choice back to the people. Letting people look after themselves.
We are predicting that this will lead to an increase in the number of people putting their assets into trusts. So we are in for a busy period ahead. But the costs to avoid gift duty under the old regime will more than likely be replaced by increased costs for both those wishing to protect their assets through trusts and those wishing to enforce rights against trusts. We believe that robust advice to ensure trusts are structured correctly will be more important than ever before.
Hand-in-hand with these changes will be the fact that the courts will be much more vigilant so prudent trust administration will be critical. The Law Commission is looking at tightening the system at the moment.
An added danger is that due to the fact that the annual gifting is gone people may not review their trust arrangements regularly. It is important to review and update wills and trusts to make sure they remain relevant.”
So why should you have a Trust?
“Trusts provide protection for assets from creditors, relationship problems, there are tax benefits and they can also provide added flexibility when faced with complex business or family situations. But it is essential that they are set up correctly to gain maximum benefits. And just because you’ve got a trust doesn’t mean it’s OK. You’ve got to review it.”
As part of their “Fix My Trust” initiative, Tammy McLeod and Davenports Harbour Law offer a free one-hour consultation so they can get to know you and any particular issues that relate to your circumstances. “Fix My Trust” will provide you with peace of mind, a strategy going forward, and a supportive team of experts who will help get you and your trust back on track.
Contact: Tammy McLeod, Davenports Harbour Lawyers, Phone: 09 915 4386, Email: tcm@davenportsharbour.co.nz, Visit: www.fixmytrust.co.nz or
www.davenportsharbour.co.nz
