Payments to owners
Owners can be paid when there is profit from a block, and the trustees have made a decision to make a distribution of that profit to owners.
When income is earned from a block of land, it is held in an account for that trust. The responsible trustee(s) will pay all expenses on the block such as tax, wages and the management fee.
The amount that remains in that trust account is profit for the year, and trustees, with the advice of owners, will make a decision on what to do with the funds. Any decision must fit with what is in the trust order. For instance, the trustees/owners may wish to give money to support the marae, or give kaumatua grants to older owners, but may only do so if the trust order has a clause allowing distribution of funds for community purposes.
Trustees and owners may also decide to keep funds for improvements that will increase the value of the asset – for example building a bridge or buying livestock.
Profit that remains in the trust account may also be distributed to owners’ Te Tumu Paeroa accounts in accordance with each owners’ shareholding.
Once money has been distributed into an owner’s Te Tumu Paeroa account, it will remain in that account until it can be paid to the person’s own bank account.
So if you have moved or changed your address – make sure you update your contact details.