Interpretation statement IS 25/18: Income tax: Whether money or property received by New Zealand tax residents from overseas is income from a foreign trust – Part Two

by Gina Gatchell | Oct 3, 2025 | Articles

Introduction and scope

Part One of this article addressed the N.Z. tax implications of distributions from foreign inter vivos trusts[1] as set out in IS 25/18: Income Tax – Whether money or property received by New Zealand tax residents from overseas is income from a foreign trust.

In succession, this part explains the circumstances in which distributions to N.Z. tax residents from foreign estates must be treated, for N.Z. tax purposes, as distributions from foreign trusts.[2]

To establish this, what happens to a decedent’s assets from the date of death must be assessed, to establish whether a testamentary trust[3] might be present.

Where a testamentary trust exists for N.Z. tax purposes, distributions from that trust will be classed as distributions from foreign trusts. The implications of this are that the N.Z. tax rules for such transactions are triggered.

You need member access to read the rest of this article.

Not yet a member? Gain access to independent analysis and commentary on international tax. Cancel at any time: Subscribe

Already a member? Login

NZ US Tax Specialists Limited

4.9

Based on 106 reviews

review us on

Safety Electrical

21:30 21 Aug 24

I came across this person by google search . First attempt could not get connected .she so good returned my call with 5 min . Asked her few question , would say very good on what she does .
Also plus point , she follows you up again . I would say very help full person . Recommend to go with her , no second thoughts .

Maryanne Garry

09:09 21 May 24

Gina is exceedingly detailed and knowledgeable. Her expertise is like a lifeline for US expats.

Matt Roll

04:09 21 May 24

I'm thankful for finding NZ US Tax Specialists because Gina is one of the few people I know with a working knowledge of the intersection of U.S. and NZ tax policies. Our tax return was accurately completed on time and without any issues. I'm planning to use their services for years to come.

Spencer Smith

03:47 21 May 24

US tax is a complex beast. Gina and her team have been very helpful to me and my clients with US tax issues.

Chris Lemon

22:46 20 May 24

Gina and the folks at NZ US Tax Specialists were very quick to answer a question I had on the NZ tax treatment of US Military pensions, a fairly obscure area of tax law. They're great to work with.

Danielle Fairey

20:00 15 Oct 23

Gina was such a great help in navigating my tax requirements after moving between the US and NZ. She was great to work with - always very responsive and helpful. I would definitely recommend and work with NZ US Tax Specialists again in the future.

Lingbawan Storer (Imbaw)

16:09 02 Oct 23

NZ US Tax Specialists has been a lifesaver with regards to a family member’s move from the US to NZ. Gina and her team have been there to help us understand the complexities of dual tax status and have greatly assisted in getting everything filed on time. While taxes will never be fun, working with NZ US Tax Specialists has brought our stress levels down considerably.

James Steele

02:57 13 Apr 23

Gina helped us prepare our US tax returns after we moved to NZ during a very busy time. We had no idea what was required as US citizens living abroad, but Gina was extremely helpful, knowledgeable, and professional. The work was affordable and well done. We had a great experience and hope to use NZ US Tax Specialists again.

Marivee McMath

06:35 13 Feb 23

I am very happy with the way NZ US Tax Specialists handled sorting out my US Taxes! It certainly put my mind at rest. Felt I was in safe 'hands' throughout the process.

Gareth Robins

04:31 13 Feb 23

Gina quickly attended to my tax questions and was very helpful

Deborah Munro

03:54 19 Oct 22

If you're a US expat and need to file a US tax return, then look no further! Gina and her team at NZ US Tax Specialists does outstanding, professional work. I had to amend my US tax return, as I didn't know I had to file a form. Gina got that done, but they also found I'd made an error, and they fixed that for me as well, keeping me in good standing with the IRS. I'm definitely returning next year to get their assistance again.

Karen Smith

23:32 02 Sep 22

I have been working with Gina since 2014, when I needed US Tax advice, being both a New Zealand and United States citizen. Over the eight years that we have been working together, I have found Gina to be extremely knowledgeable about the US tax system and the New Zealand IRD. She is quickly able to provide definitive answers to my US tax questions, via her extensive contacts in the US tax department.
Gina is always prompt in responding to my email and phone conversation questions and her professionalism has inspired my confidence in her many times over.
She has guided me through my annual tax return filing with integrity and honesty and I fully trust her to get the job done well each year.