ACT's David Seymour - i like his style.

[Bjauck]

He made a thing about earning a three figure salary yet not being able to buy a home. Sure that is a plight affecting many people in contemporary NZ. Even those earning above average incomes find it difficult - after income tax, iiving expenses and GST to save and buy and acquire a suitable property to live in.

However Seymour is also actually a beneficiary of his grandparent's and parent's trusts. Those trusts own properties which will probably have tax-free gains when realised or transferred to beneficiaries.

Coincidentally, Seymour is also against a capital gains tax - and was against extending the real estate bright line. https://www.odt.co.nz/news/politics/...tealth-seymour

Maybe Seymour will now make a thing about how being born into a family, with real estate interests settled in trust structures, in Nineteenth Century Victorian Britain - oops I mean in present day NZ - is the best way to secure an interest in residential property in NZ.

https://www.nzherald.co.nz/nz/politics/act-leader-david-seymours-embarrassment-cant-afford-to-buy-guy-has-an-interest-in-three-properties/H6PC3IOARTNTLTIKGBZP3NN34IAct leader David Seymour's embarrassment: 'Can't afford to buy' guy has an interest in three properties

[iceman]

I read the article. What a non news item I thought. So he is one of several beneficiaries in Trusts where his grandparents and parents are the Settlors. Like tens or hundreds of thousand other New Zealanders, many of whom have no idea they are Beneficiaries.

[Bjauck]

I read the article. What a non news item I thought. So he is one of several beneficiaries in Trusts where his grandparents and parents are the Settlors. Like tens or hundreds of thousand other New Zealanders, many of whom have no idea they are Beneficiaries.

At his age and with his inquiring mind and intelligence, he may well have been aware of these family trusts but he may have not been aware (until recently) of the requirement to disclose his interests as a beneficiary. Other MPs may have realised that beneficiaries needed to disclose their interest or they may be involved with trusts as settlor-beneficiaries and for that it may have been more self-evident that disclosure was required.

Sure the wealthiest decile of NZers have a lot of wealth in trusts. We do not know the value of the assets involved and how many grandchildren are involved. He won't be the only person to benefit from NZ's family trust structures, lack of a comprehensive CGT and estate duties set to zero. However he will get an inheritance should he need a boost up from his high salary and a boost to any home ownership ambitions and to his (forgotten) KiwiSaver and his other pension fund.

What's more he is an MP and Party leader. That it was only his self-disclosure that revealed these interests is a wake-up call. How many other non-disclosures pepper the register of MPs financial interests? Transparency of financial and vested interests of our legislators should be key.

[Baa_Baa]

I read the article. What a non news item I thought. So he is one of several beneficiaries in Trusts where his grandparents and parents are the Settlors. Like tens or hundreds of thousand other New Zealanders, many of whom have no idea they are Beneficiaries.

I don't know what the fuss is about, David Seymour was elected as MP in 2014 and in 2015 disclosed in the Register of Pecuniary and Other Specified Interests of Members of Parliament his interests in these three Trusts:

As at 31 January 2015
David Seymour (ACT NZ, Epsom)
Beneficial interests in, and trusteeships of, trusts
BH & VA Seymour Family Trust (beneficiary)
The Beachcomber Trust (beneficiary)
N.N. Faithfull Family Trust (beneficiary)

[Baa_Baa]

At his age and with his inquiring mind and intelligence, he may well have been aware of these family trusts but he may have not been aware (until recently) of the requirement to disclose his interests as a beneficiary. Other MPs may have realised that beneficiaries needed to disclose their interest or they may be involved with trusts as settlor-beneficiaries and for that it may have been more self-evident that disclosure was required.

That's just plain wrong.

[fungus pudding]

He made a thing about earning a three figure salary yet not being able to buy a home. Sure that is a plight affecting many people in contemporary NZ. Even those earning above average incomes find it difficult - after income tax, iiving expenses and GST to save and buy and acquire a suitable property to live in.

However Seymour is also actually a beneficiary of his grandparent's and parent's trusts. Those trusts own properties which will probably have tax-free gains when realised or transferred to beneficiaries.

Coincidentally, Seymour is also against a capital gains tax - and was against extending the real estate bright line. https://www.odt.co.nz/news/politics/...tealth-seymour

Maybe Seymour will now make a thing about how being born into a family, with real estate interests settled in trust structures, in Nineteenth Century Victorian Britain - oops I mean in present day NZ - is the best way to secure an interest in residential property in NZ.

https://www.nzherald.co.nz/nz/politics/act-leader-david-seymours-embarrassment-cant-afford-to-buy-guy-has-an-interest-in-three-properties/H6PC3IOARTNTLTIKGBZP3NN34IAct leader David Seymour's embarrassment: 'Can't afford to buy' guy has an interest in three properties

Surely it would have been his grandparents' and his parents' trusts?

[artemis]

Looks to me like Mr Seymour correctly declared his trusts interest back in the day but not that there were properties in the trusts. His 'problem' is that he talked about home ownership. Quite sensible politically saying he is embarrassed and will declare these interests in future because it closes the issue down effectively.

Most trusts have properties in them. I expect that all MPs will now be checking that interests in trusts are recorded.

[Bjauck]

That's just plain wrong.

There needs to be separate disclosure of interests in real estate. So if the trust, of which he is a beneficiary, owns real estate, he would need to make a specific disclosure of this interest. As I understand it, he has a beneficial interest in the trusts. This is disclosed as a pecuniary interest and then, as they own real estate, as an interest in real estate.

[Bjauck]

Surely it would have been his grandparents' and his parents' trusts?

Presumably they had the assets originally and were the settlors in favour of their nominated beneficiaries.

[Zaphod]

I read the article. What a non news item I thought. So he is one of several beneficiaries in Trusts where his grandparents and parents are the Settlors. Like tens or hundreds of thousand other New Zealanders, many of whom have no idea they are Beneficiaries.

The Trusts Act 2019 (which took effect in Jan this year if I recall correctly) requires a much higher degree of disclosure to the beneficiaries, so presumably he has been informed about the consents of the trust.

Unfortunately the concept of trusts and those who are beneficiaries of them have been stigmatised in a very negative light by many.