Trustee Act 1956

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Reprint as at 1 January 2018

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.

	Title
1	Short Title and commencement
	Part 1 Preliminary
2	Interpretation and application
3	Act to bind Crown
	Part 2 Investment
4	Authorised investments [Repealed]
4A	Investments, loans, and advances [Repealed]
5	Purchase of redeemable stock at a premium or discount [Repealed]
6	Trustee carrying on business may invest in shares in co-operative enterprises [Repealed]
7	Discretion of trustees [Repealed]
8	Power to retain investment which has ceased to be authorised [Repealed]
9	Investment in bearer securities [Repealed]
10	Loans and investments by trustees not chargeable as breaches of trust [Repealed]
11	Liability for loss by reason of improper investment [Repealed]
11A	Release of part of security [Repealed]
12	Powers in relation to company securities [Repealed]
13	Power to pay calls [Repealed]
13A	Power to invest
13B	Duty of trustee to invest prudently
13C	Duty of certain persons to exercise special skill
13D	Provisions in trust instrument relating to duty of investing trustees
13E	Matters to which trustee may have regard in exercising power of investment
13F	Trustee’s duties at law preserved
13G	Duty to comply with requirements of trust instrument or statute as to consents or directions
13H	Power to retain investments
13I	Investment in bearer securities
13J	Purchase of redeemable securities at a premium or discount
13K	Powers in relation to company securities
13L	Power to pay calls
13M	Court may take into account investment strategy in action for breach of trust
13N	Certain loans and investments by trustees not chargeable as breaches of trust
13O	Liability for loss by reason of improper secured investment
13P	Release of part of security
13Q	Power of court to set off gains and losses arising from investment
	Part 3 General powers and indemnities of trustees
	General powers
14	Powers to sell, exchange, partition, postpone, lease, purchase, etc
15	Miscellaneous powers in respect of property
16	Power of trustee for sale to sell by auction, etc, or before date specified
17	Power to sell property on terms
18	Power to sell subject to depreciatory conditions
19	Power of trustees to give receipts
20	Power to compound liabilities
21	Power to raise money by sale or mortgage
22	Protection of purchasers, etc, dealing with trustee
23	Devolution of powers or trusts
24	Power to insure
25	Application of insurance money where policy kept up under any trust, power, or obligation
25A	Power to treat share premium account distributions as income [Repealed]
26	Deposit of documents for safe custody
27	Reversionary interest
28	Valuations
29	Power to employ agents
30	Power to concur with others
31	Power to delegate trusts
32	Power to carry on business
32A	Power of trustee carrying on trust business to acquire shares in co-operative enterprises
33	Power to convert business into a company
33A	Trustee may sue himself in a different capacity
	Indemnities
34	Protection against liability in respect of rents and covenants
34A	Trustee to have lien on policy money for premiums
35	Protection against creditors and others by means of advertisements
36	Protection in regard to notice
37	Exoneration of trustees in respect of certain powers of attorney
38	Implied indemnity of trustees
39	Protection of trustee who pays trust money to bankrupt in good faith and without knowledge of bankruptcy
39A	Protection of trustee in handing over chattels to life tenant
39B	Protection of trustee in handing over chattels to infant
	Maintenance, advancement, and protective trusts
40	Power to apply income for maintenance, etc, and to accumulate surplus income during a minority
41	Power to apply capital for maintenance, etc
41A	Conditional advances for maintenance, etc
42	Protective trusts
	Special powers in respect of businesses
42A	Power to set aside reserves out of income or profits of business
42B	Power to apply capital of business for maintenance
42C	Matters to be taken into consideration when exercising powers
42D	Apportionment of income
	Special powers in respect of portfolio investment entities
42E	Power to adjust interests in trust property of portfolio investment entity
	Part 4 Appointment and discharge of trustees
43	Power of appointing new trustees
44	Evidence as to a vacancy in a trust
45	Retirement of trustee
46	Discharge of trustee with assistance of court or Registrar
47	Vesting of trust property in new or continuing trustees
48	Corporations acting as trustees
49	Advisory trustees
50	Remuneration of custodian trustees
	Part 5 Powers of the court
	Appointment of new trustees
51	Power of court to appoint new trustees
	Vesting orders
52	Vesting orders of land
53	Orders as to contingent rights of unborn persons
54	Vesting order in place of conveyance by infant mortgagee
55	Vesting order consequential on order for sale or mortgage of land
56	Vesting order consequential on judgment for specific performance
57	Effect of vesting order
58	Power to appoint person to convey
59	Vesting orders as to stock and things in action
60	Vesting orders in respect of shares in ships and industrial property
61	Vesting orders of charity property
62	Orders made upon certain allegations to be conclusive evidence
63	Orders liable to stamp duty [Repealed]
	Jurisdiction to make other orders
64	Power of court to authorise dealings with trust property
64A	Power of court to authorise variations of trust
64B	Powers of court in respect of capital dividends
65	Power of court to direct sale or lease [Repealed]
66	Right of trustee to apply to court for directions
67	Persons entitled to apply to court
68	Applications to court to review acts and decisions of trustee
69	Protection of trustee while acting under direction of court
70	Powers of court to give judgment in absence of a trustee
71	Power of court to charge costs on trust estate
72	Commission
73	Power to relieve trustee from personal liability
74	Power to make beneficiary indemnify for breach of trust
75	Barring of claims
76	Distribution of shares of missing beneficiaries
76A	Service of notices, etc, under sections 75 and 76
	Payment to Crown
77	Payment by trustees to Crown
78	Disposal of funds paid to Crown
79	Orders in respect of funds paid to Crown
	Part 6 General provisions
80	Indemnity to banks and others
81	Operation on bank account of trustees
82	Inclusion of non-charitable and invalid purposes not to invalidate a trust [Repealed]
83	Special rules as to apportionment on purchase, sale, or transfer in certain cases
83A	Examination of accounts of trust estates administered by trustee corporations
83B	Audit of other trust estates
84	Costs and testamentary expenses to be payable out of capital of settled residuary estate of deceased
85	Application of income of settled property pending conversion
86	Fees and commission deemed a testamentary expense
87	Costs of inquiring regarding beneficiaries
88	Life tenant to have powers of a trustee in certain cases
89	Repeals, amendments, and savings
	Schedule 1 Other Acts authorising trustee investments [Repealed]
	Schedule 2 Enactments repealed
	Schedule 3 Enactments amended
	Schedule 4 Forms
	Trustee Amendment Act 1988
	Trustee Amendment Act 2005
	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).

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Trustee Act 1956

Trustee Act 1956

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