The tax you might have to pay on the profit from the sale of a residential property has recently changed! Whether you pay tax on the profit from the sale of a house depends on what you’ve been using the house for (is it your main home), when you acquired it and...
In very recent news, the government has proposed a law change to allow people to build granny flats of up to 60m2 without having to get a resource consent or building consent from the local council. A 60m2 granny flat is not tiny! There are many pre-built options...
We are thrilled to announce that from 1 November 2023, Machaela Forbes has appointed as a director of The Law Shop! Machaela has been a solicitor with us since 2017 and quickly became an integral part of The Law Shop family. She has consistently demonstrated...
We are so pleased to announce that we have moved into our new premises! There is still work to be done outside and some tweaks inside but we have settled in, are seeing clients and loving our new space!
Back in 2003, Paula and the two women she worked with dreamed of owning and running The Law Shop as a business where women could have it all – a great job balanced with an involved family and personal life - from a quaint little house on the corner of Ranolf and Devon...
Our next big announcement is that we are moving! The Law Shop is thrilled to announce that we are moving to 170 Ranolf Street on 1 September 2023. Renovations are currently underway, and we're excited for you to see the changes and experience the ample parking space...
The koru symbolises new beginnings, life and hope. Today marks the dawning of a new era at The Law Shop! On Friday 30 June 2023, our family lawyers had their last day with us, and now our property team stands strong and ready to embrace the exciting opportunities that...
After 9 years as business partners, Stephanie is leaving The Law Shop on 30 June to pursue an exciting career opportunity at Kahui Legal. Samantha will join here there and we will cease offering family law although we’ll continue to draft and advise on relationship...
At The Law Shop, we specialize in real estate transactions, including mortgage refinancing. Let us take care of the legal work to ensure your refinance goes smoothly and without any complications. We understand that refinancing your mortgage can be a time-sensitive...
Whether it’s a showroom, retail space or hospitality business, or even just an area to park your company vehicles, it’s important to have a lease which ensures that both you and your landlord have a clear understanding of each other’s rights and obligations. Paula...
“Essentially, due diligence is doing your homework and thoroughly investigating the business before you commit to buying it,” says Paula Lines from The Law Shop. “You’ll need to get accounting advice on the past performance of the business, research council...
Learning how to effectively manage your money can truly make or break a business, as cash is the lifeblood of any venture. Controlling cash can be streamlined by bringing in technology to assist with anything from accounting reconciliation to supplier management....
Business law expert and Director of The Law Shop Paula Lines explains that businesses that have their planning in order are better protected. All sorts of issues can come up this time of year, but plenty can be dealt with ahead of time. “Payday is a big one. You’ll...
Business law expert Paula Lines, director of The Law Shop, has been working from a virtual space since August this year and for her firm, it’s working well. Although the Greerton office is gone, it’s business as usual for The Law Shop. After thorough research and an...
Does your business close over the holiday season so you and your team can enjoy some time to rest and recharge? If so, you’re probably looking forward to recording a new voicemail message for when you shut the doors until January. Maybe you work through the Christmas...
Maybe you’ve arranged income protection insurance to make sure that your family isn’t left high and dry if things go pear-shaped. That’s great, but from a business perspective, there’s more to it. So, what happens to your business if you or your business partners get...
“We’re often told by our clients that they “don’t have a mortgage” when they ask us to act for them on the sale of their home. However, many times when we search the title, we find there is a mortgage registered and we will need to have it discharged on the settlement...
There are plenty of things you can do to get the most out of the sale of your business. It all depends on your motivations and objectives, but if you can afford to take the time you should do everything you can to get it in the best shape possible before you even look...
“Usually, if a marriage, civil union or de facto relationship has lasted more than 3 years, all relationship property will be divided equally between the parties unless there is an opting out agreement, or if the Family Court determines that there are extraordinary...
Your landlord or a supplier can ask for your personal guarantee, which is common business practice. If the business becomes unable to pay the debt, the personal guarantor will be called upon to repay what’s outstanding. In small businesses, the guarantor is usually...
So you’ve registered formal interest, taken care of due diligence, and you’re ready to sign on the dotted line and buy the business. Now it is important to make sure that all the important contracts get transferred from the previous owner to you. It’ll help you make a...
At that time, it is important to appoint an adviser who can assist you further. Professional advice is important to make sure all bases are covered, but getting a lawyer and accountant on board also improves your credibility as a buyer. “A lawyer’s role in the process...
Yes, you read that right. The Law Shop, with offices in Tauranga and Rotorua, is a firm of all women. It wasn’t set out to be that way when director Paula Lines took over the then Rotorua-based legal firm in September 2008. There was no plan in place to keep it ladies...
If you’re starting a business this year, there will be a lot to think about. Are you starting from scratch, or do you want to buy an existing business or a franchise? Buying a business gives you a known name, some structure, and a client base. Starting a brand-new...
Paula Lines, director at The Law Shop, explains that creating the partnership or shareholders agreement and setting up the proper structure for the partnership are the two most important steps in the process. She says it’s about understanding the mechanics of how your...
Most contracts do not become legally binding until it has the signatures of each party involved. By signing off on a document, it confirms each party’s agreement and intention of executing the terms in the contract. Whether you are agreeing to an employment contract,...
Many businesses are operated through companies to limit the liability of the people behind the company, but there are circumstances when a director will be personally liable. It’s important to know when those liabilities may arise. Paula Lines from The Law Shop...
The AML/CFT Act applies to banks, casinos, financial institutions and some trust and company service providers. If you’ve tried to open a bank account or get a loan in recent years, you’ve been asked to provide certain identification and proof of address as well as...
“If it becomes clear that a trust is no longer needed or desirable, the trust can be wound up. For instance when administration costs are too high in relation to the recognised benefits. Also, if the purpose of setting up a trust in the first place was to protect...
A trust is a legally binding arrangement when a person (the settlor) transfers legal ownership of assets to certain chosen persons (trustees) to be held for the benefit of other persons named by the settlor (the beneficiaries). If your family home is in a trust, for...
As this is going to be your livelihood, you’ll need to know exactly what you’re getting into. Paula Lines and her team at The Law Shop provide expert legal advice on all of the aspects of purchasing a business, from the purchase agreement to the lease, so you can...
“It’s very much like the EPA, but it’s a different document. This is the one you need for your business. If you're overseas, become incapacitated, or if your business partner dies and you don’t have this deed sorted, you can count on major headaches. Costly delays and...
An Enduring Power of Attorney is a legal document that enables you to appoint someone to make financial and care decisions on your behalf should you lack the capacity to make those decisions for yourself, due to illness or injury or if you’re away overseas and unreachable.
You may be thinking “I don’t need an Enduring Power of Attorney – I’m fit, young and healthy”. This is a common misunderstanding – you can ONLY set up an EPA when you have mental capacity. Once you’ve lost capacity, or if you become sick suddenly, it’s too late. Your loved ones are forced to apply for orders in the Family Court to be able to make any decisions for you. This is expensive, intrusive, time consuming and stressful.
There are two separate EPA documents; one that covers your property affairs and one that covers your personal care and welfare decisions. You may like to pick one person to carry out both roles, or you may like to pick two different people that you think would be most appropriate in each role (although they will need to be able to work well together in that case). For property, you can specify two people to act together.
We commonly see elderly clients who need their Property attorney to pay their bills while they are stuck up at the hospital recovering from illness and our favourite story of using a Personal Care and Welfare EPA was to get the medical records from a rural GP for a 20 year old on her OE who unexpectedly needed information on any pre-existing conditions that could complicate the urgent surgery she required.
Paula Lines from The Law Shop explains that this risk can be enough to put some people off having their own business and that this is where setting up a trust can be useful.
“If a trust owns your family home, and there is no debt back to you, the house is likely to be outside the reach of creditors or court orders. This is why many business owners choose to have a family trust, which owns their family home,” Paula says.
Trusts are an increasingly popular way of protecting property and managing assets. How it works is that you transfer the legal ownership of your assets to the trustees, while continuing to use and enjoy them as long as the trust deed permits. For example, if your home is in a trust, you no longer personally own it, but you can live in it if that’s what the trust deed states and the trustees agree.
The person or company who creates the trust is called a settlor, and the people who manage the trust are the trustees. The settlor can also be a trustee. Beneficiaries are the people who benefit from the trust, for example, members of your family. There is often more than one trustee, and there may also be more than one settlor.
It makes sense to also appoint a trustee who is not a family member, and professionals such as lawyers and accountants can act as independent trustees. Also, a trust doesn’t usually end with the settlor’s death. It can last for a maximum of 80 years from inception, and this is likely to be extended in the future.
“Although there is some negativity about using trusts or other structures that are seen as a way to hide your assets, for many people it is simply a desire to protect their spouse and children, not at all intended as a means to avoid paying debt,” Paula says.
“To find out if setting up a family trust is right for you, you’ll have to weigh up the advantages and disadvantages of your options, including the on-going management compliance costs of each. As your lawyer, we can help you determine exactly what’s required, and make sure it meets your needs,” she explains.
The team at The Law Shop deals with many personal, family, business and property matters and transactions and they can expertly advise you on all matters relating to trusts and the law. Contact them today at www.thelawshop.co.nz if you would like to discuss your circumstances with a no- nonsense lawyer, and find out if a family trust is a good option for you.