Trustee Act 1956

  • Warning: Some amendments have not yet been incorporated
  • This version was replaced on 27 April 2017 to make corrections to sections 28 and 45(1)(a) under section 25(1)(i) and (j)(ii) of the Legislation Act 2012, and on 2 June 2017 to correct a typographical error in section 66.

Reprint as at 1 March 2017

Coat of Arms of New Zealand

Trustee Act 1956

Public Act
 
1956 No 61
Date of assent
 
25 October 1956
Commencement
 
see section 1(2)
Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Justice.

Contents

Title
1Short Title and commencement
2Interpretation and application
3Act to bind Crown
4Authorised investments [Repealed]
4AInvestments, loans, and advances [Repealed]
5Purchase of redeemable stock at a premium or discount [Repealed]
6Trustee carrying on business may invest in shares in co-operative enterprises [Repealed]
7Discretion of trustees [Repealed]
8Power to retain investment which has ceased to be authorised [Repealed]
9Investment in bearer securities [Repealed]
10Loans and investments by trustees not chargeable as breaches of trust [Repealed]
11Liability for loss by reason of improper investment [Repealed]
11ARelease of part of security [Repealed]
12Powers in relation to company securities [Repealed]
13Power to pay calls [Repealed]
13APower to invest
13BDuty of trustee to invest prudently
13CDuty of certain persons to exercise special skill
13DProvisions in trust instrument relating to duty of investing trustees
13EMatters to which trustee may have regard in exercising power of investment
13FTrustee’s duties at law preserved
13GDuty to comply with requirements of trust instrument or statute as to consents or directions
13HPower to retain investments
13IInvestment in bearer securities
13JPurchase of redeemable securities at a premium or discount
13KPowers in relation to company securities
13LPower to pay calls
13MCourt may take into account investment strategy in action for breach of trust
13NCertain loans and investments by trustees not chargeable as breaches of trust
13OLiability for loss by reason of improper secured investment
13PRelease of part of security
13QPower of court to set off gains and losses arising from investment
14Powers to sell, exchange, partition, postpone, lease, purchase, etc
15Miscellaneous powers in respect of property
16Power of trustee for sale to sell by auction, etc, or before date specified
17Power to sell property on terms
18Power to sell subject to depreciatory conditions
19Power of trustees to give receipts
20Power to compound liabilities
21Power to raise money by sale or mortgage
22Protection of purchasers, etc, dealing with trustee
23Devolution of powers or trusts
24Power to insure
25Application of insurance money where policy kept up under any trust, power, or obligation
25APower to treat share premium account distributions as income [Repealed]
26Deposit of documents for safe custody
27Reversionary interest
28Valuations
29Power to employ agents
30Power to concur with others
31Power to delegate trusts
32Power to carry on business
32APower of trustee carrying on trust business to acquire shares in co-operative enterprises
33Power to convert business into a company
33ATrustee may sue himself in a different capacity
34Protection against liability in respect of rents and covenants
34ATrustee to have lien on policy money for premiums
35Protection against creditors and others by means of advertisements
36Protection in regard to notice
37Exoneration of trustees in respect of certain powers of attorney
38Implied indemnity of trustees
39Protection of trustee who pays trust money to bankrupt in good faith and without knowledge of bankruptcy
39AProtection of trustee in handing over chattels to life tenant
39BProtection of trustee in handing over chattels to infant
40Power to apply income for maintenance, etc, and to accumulate surplus income during a minority
41Power to apply capital for maintenance, etc
41AConditional advances for maintenance, etc
42Protective trusts
42APower to set aside reserves out of income or profits of business
42BPower to apply capital of business for maintenance
42CMatters to be taken into consideration when exercising powers
42DApportionment of income
42EPower to adjust interests in trust property of portfolio investment entity
43Power of appointing new trustees
44Evidence as to a vacancy in a trust
45Retirement of trustee
46Discharge of trustee with assistance of court or Registrar
47Vesting of trust property in new or continuing trustees
48Corporations acting as trustees
49Advisory trustees
50Remuneration of custodian trustees
51Power of court to appoint new trustees
52Vesting orders of land
53Orders as to contingent rights of unborn persons
54Vesting order in place of conveyance by infant mortgagee
55Vesting order consequential on order for sale or mortgage of land
56Vesting order consequential on judgment for specific performance
57Effect of vesting order
58Power to appoint person to convey
59Vesting orders as to stock and things in action
60Vesting orders in respect of shares in ships and industrial property
61Vesting orders of charity property
62Orders made upon certain allegations to be conclusive evidence
63Orders liable to stamp duty [Repealed]
64Power of court to authorise dealings with trust property
64APower of court to authorise variations of trust
64BPowers of court in respect of capital dividends
65Power of court to direct sale or lease [Repealed]
66Right of trustee to apply to court for directions
67Persons entitled to apply to court
68Applications to court to review acts and decisions of trustee
69Protection of trustee while acting under direction of court
70Powers of court to give judgment in absence of a trustee
71Power of court to charge costs on trust estate
72Commission
73Power to relieve trustee from personal liability
74Power to make beneficiary indemnify for breach of trust
75Barring of claims
76Distribution of shares of missing beneficiaries
76AService of notices, etc, under sections 75 and 76
77Payment by trustees to Crown
78Disposal of funds paid to Crown
79Orders in respect of funds paid to Crown
80Indemnity to banks and others
81Operation on bank account of trustees
82Inclusion of non-charitable and invalid purposes not to invalidate a trust [Repealed]
83Special rules as to apportionment on purchase, sale, or transfer in certain cases
83AExamination of accounts of trust estates administered by trustee corporations
83BAudit of other trust estates
84Costs and testamentary expenses to be payable out of capital of settled residuary estate of deceased
85Application of income of settled property pending conversion
86Fees and commission deemed a testamentary expense
87Costs of inquiring regarding beneficiaries
88Life tenant to have powers of a trustee in certain cases
89Repeals, amendments, and savings
[Repealed]
Reprint notes

An Act to consolidate and amend certain enactments of the Parliament of New Zealand relating to trusts and trustees

Title: amended, on 1 January 1987, pursuant to section 29(2) of the Constitution Act 1986 (1986 No 114).