Trusts Act 2019

If you need more information about this Act, please contact the administering agency: Ministry of Justice

Search within this Act

Version as at 28 October 2021

Trusts Act 2019

Public Act		2019 No 38
Date of assent		30 July 2019
Commencement		see section 2

Note

The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

Note 4 at the end of this version provides a list of the amendments included in it.

This Act is administered by the Ministry of Justice.

1	Title
2	Commencement
	Part 1 General provisions
3	Purpose
4	Principles
5	Application, and relationship of Act with trust terms, common law and equity, and other enactments
6	Overview of this Act
7	Interpretation of Act
8	Inherent jurisdiction of court not affected
9	Definitions
10	Transitional, savings, and related provisions
11	Act binds the Crown
	Part 2 Express trusts
12	Meaning of express trust
13	Characteristics of express trust
14	Sole trustee cannot be sole beneficiary
15	Creation of express trust
16	Maximum duration of trust
17	Application of maximum duration rule to resettlements
18	Accumulation of income by trust
19	Distribution of trust property on expiry of trust
20	Age of majority
	Part 3 Trustees’ duties and information obligations
	Subpart 1—Duties of trustee
21	Guiding principle in performing duties
	Mandatory duties
22	Mandatory duties
23	Duty to know terms of trust
24	Duty to act in accordance with terms of trust
25	Duty to act honestly and in good faith
26	Duty to act for benefit of beneficiaries or to further permitted purpose of trust
27	Duty to exercise powers for proper purpose
	Default duties
28	Default duties
29	General duty of care
30	Duty to invest prudently
31	Duty not to exercise power for own benefit
32	Duty to consider exercise of power
33	Duty not to bind or commit trustees to future exercise of discretion
34	Duty to avoid conflict of interest
35	Duty of impartiality
36	Duty not to profit
37	Duty to act for no reward
38	Duty to act unanimously
39	Adviser must alert settlor to modification or exclusion of default duty
	Subpart 2—Exemption and indemnity clauses
40	Restriction on trustee exemption clauses
41	Restriction on trustee indemnity clauses
42	Invalidity of exemption clause or indemnity clause
43	Adviser must alert settlor to liability exclusion or indemnity clause
44	Court consideration of gross negligence
	Subpart 3—Trustees’ obligations to keep and give trust information
	Documents to be kept by trustees
45	Trustee must keep core documents
46	Keeping documents where there is more than 1 trustee
47	Documents must be kept for duration of trusteeship
48	Trustee must pass on documents
	Giving information to beneficiaries
49	Definitions for purposes of sections 50 to 55
50	Purpose and application of sections 51 to 55
51	Presumption that trustee must notify basic trust information
52	Presumption that trustee must give information on request
53	Procedure for deciding whether presumption applies
54	Procedure when trustee decides to give no information
55	Beneficiary may be required to pay cost of giving information
	Part 4 Trustees’ powers and indemnities
	Subpart 1—Powers of trustee
56	General powers of trustee
57	Status of provisions on specific powers of trustee
	Investment powers
58	Trustee has power to invest
59	Matters which trustee may consider in exercising power to invest
	Power to determine treatment of returns and accounts
60	Power to determine whether return on investment is income or capital
61	Apportionment of receipts and outgoings between income and capital
	Powers to apply trust property for beneficiary’s welfare
62	Trustee’s power to pay or apply income for child beneficiary’s welfare
63	Trustee’s powers with respect to income of child beneficiary
64	Trustee’s power to pay or apply capital for beneficiary’s welfare
65	Trustee may impose conditions on payment for beneficiary’s welfare
66	Trustee not liable for certain losses in relation to amounts paid or applied for beneficiary’s welfare
	Exercise of trustee powers and functions by others
67	Trustee’s power to appoint others to exercise or perform certain powers or functions
68	Trustee’s duties to keep appointments under review and to fulfil general duty of care
69	Trustee’s liability for acts of appointee limited
70	Trustee’s power to delegate powers and functions in specified circumstances
71	Notice of delegation of trustee’s powers and functions
72	Trustee’s liability for acts of delegate limited
73	Application to Public Trust to consent to become delegate
	Special trust advisers
74	Role and appointment of special trust advisers
75	Reliance on special trust adviser’s advice
76	Remuneration of special trust advisers
	Other powers and rights of trustee
77	Application of insurance money for loss or damage of trust property
78	Trustee’s power to adjust interests in trust property of portfolio investment entity
79	Trustee’s liability limited where notice given to distribute trust property without regard to unknown claims
	Protection of purchasers and mortgagees dealing with trustees
80	Protection of purchasers and mortgagees dealing with trustees
	Subpart 2—Trustees’ indemnities
81	Trustee’s liability for expenses and liabilities incurred, and trustee’s right to indemnity
82	Indemnification of trustee with agreement of beneficiaries where indemnity impaired
83	Power of court to approve indemnification
84	Power of court to waive requirement of consent to indemnification
85	Ranking of trust property
86	Creditor’s limited claim to trust property through trustee’s indemnity
87	Trustee’s lien on insurance money for premiums
88	Trustee’s indemnity for rent, covenant, or agreement under lease
89	Protection of trustee in handing over personal property to life tenant
90	Protection of trustee in handing over personal property to child
91	Protection relating to notice when person trustee of more than 1 trust
	Part 5 Appointment and discharge of trustees
	Power to remove or to appoint trustee
92	Who may remove trustee and appoint replacement
93	Person with power to remove or appoint trustee may apply to court for directions
94	Duty to exercise power to remove or appoint trustee honestly and for proper purpose
95	Application to review exercise of power to remove or to appoint trustee
	Appointment of trustee
96	Who may be appointed as trustee
97	Statutory trustee may be sole trustee
98	How trustee is appointed
99	How trustee accepts or rejects appointment
100	Acts of trustee not invalidated by defect in appointment
	Retirement of trustee
101	How trustee retires
	Death of trustee
102	Devolution of powers on death of trustee
	Removal of trustee
103	How trustee is removed
104	Compulsory removal of trustee
105	Optional removal of trustee
106	Notice of decision to remove
107	Effect of notice
108	Removal where notice cannot be given
109	Application to prevent removal
110	Procedure on trustee’s application to prevent removal
111	Court may make order preventing removal
112	Court may make order for removal
	Replacement of trustee
113	How trustee is replaced
114	Court may appoint or replace trustee
115	Replacing sole trustee with multiple trustees
	Divesting and vesting of trust property
116	Divesting and vesting of trust property on change of trustees
117	Requirements to notify, register, or record divesting and vesting of trust property
118	Requirement to assist in transfer of trust property
119	Protection in relation to notifying, registering, or recording transfer of trust property
120	Departing trustee must be given certain documents
	Part 6 Termination and variation of trusts
121	Termination of trust by unanimous consent of beneficiaries
122	Variation or resettlement of trust by unanimous consent of beneficiaries
123	Beneficiary’s right to share of trust property
124	Power of court to approve termination, variation, or resettlement of trust
125	Power of court to waive requirement of consent to termination, variation, or resettlement of trust
	Part 7 Court powers and dispute resolution
126	Court may review trustee’s act, omission, or decision
127	Procedure for court’s review of trustee’s act, omission, or decision
128	Court may take into account investment strategy in action for breach of trust
129	Court may set off gains and losses arising from investment
130	Power of court to vary or extend trustees’ powers in relation to property
131	Court may relieve trustee from personal liability
132	Court may make beneficiary indemnify trustee for breach of trust
133	Trustee may apply to court for directions
134	Protection of trustee while acting under direction of court
135	Trustee may apply to court to bar claims
136	Trustee may apply to court to allow distribution of missing beneficiaries’ shares
137	Trustee may sue self in different capacity
138	Court may appoint receiver for trust
139	Court may order payment of remuneration to trustee
140	Court may charge costs on trust property
	Jurisdiction of Family Court
141	Jurisdiction of Family Court
	Alternative dispute resolution
142	Definitions for purposes of sections 143 to 148
143	Power of trustee to refer matter to alternative dispute resolution process
144	ADR process for internal matter if trust has beneficiaries who are unascertained or lack capacity
145	Power of court to order ADR process for internal matter
146	Trustee may give undertakings for purposes of ADR settlement or arbitration agreement and any arbitral award
147	Trustee’s liability in relation to ADR settlement or arbitration agreement and any arbitral award limited
148	Application of Arbitration Act 1996
	Part 8 Miscellaneous provisions
	Transfer to the Crown
149	Transfer to the Crown of non-distributable trust property
150	Financial products transferred to the Crown
151	Administration by the Crown of transferred property
152	Public notice of property transferred to the Crown
	Investigation of condition and accounts of certain trust property
153	Application to Public Trust for investigation of condition and accounts of trust property
154	Appointment of investigator by Public Trust
155	How investigator is to conduct and report on investigation
156	Costs of investigation borne by trustees
157	Application to court to determine who bears costs of investigation
158	Application to court to cease investigation
	Life tenant to have powers of trustee in certain cases
159	Life tenant to have powers of trustee in certain cases
	Transitional regulations
160	Regulations providing for transitional matters
	Consequential amendments and repeals
161	Consequential amendments
162	Repeals
	Part 9 Amendments to other Acts
	Subpart 1—Amendments to Arbitration Act 1996
163	Amendments to Arbitration Act 1996
164	New section 10A inserted (Arbitration of trust matters)
	10A	Arbitration of trust matters
	Subpart 2—Amendments to Financial Markets Conduct Act 2013
165	Amendments to Financial Markets Conduct Act 2013
166	New section 110A and cross-heading inserted
		Application of Trusts Act 2019
	110A	Application of Trusts Act 2019
167	Section 112 amended (General duties applying in exercise of supervisor’s functions)
168	Section 143 amended (General duties applying in exercise of manager’s functions)
169	Section 153 amended (General duties applying in exercise of supervisor’s functions)
170	New section 155A and cross-heading inserted
		Application of Trusts Act 2019
	155A	Application of Trusts Act 2019
171	Section 548 amended (Other regulations)
172	Section 550 amended (Procedural requirements for regulations relating to exemptions, exclusions, and definitions)
173	Section 556 amended (FMA may grant exemptions)
174	Section 557 amended (Restriction on FMA’s exemption power)
175	Schedule 3 amended
	Subpart 3—Amendments to Financial Advisers Act 2008
176	Amendments to Financial Advisers Act 2008
177	New section 77TA and cross-heading inserted
		Application of Trusts Act 2019
	77TA	Application of Trusts Act 2019
178	Section 154 amended (General regulations)
	Subpart 4—Amendment to Financial Markets Authority Act 2011
179	Amendment to Financial Markets Authority Act 2011
180	Schedule 1 amended
	Subpart 5—Amendments to Financial Services Legislation Amendment Act 2019
181	Amendments to Financial Services Legislation Amendment Act 2019
182	Section 29 amended (New subparts 5A and 5B of Part 6 inserted)
		Application of Trusts Act 2019
	431ZJ	Application of Trusts Act 2019
	Subpart 6—Amendment to Retirement Villages Act 2003
183	Amendment to Retirement Villages Act 2003
184	New section 105A inserted (Regulations exempting from provisions of Trusts Act 2019)
	105A	Regulations exempting from provisions of Trusts Act 2019
	Schedule 1 Transitional, savings, and related provisions
	Schedule 2 Provisions that apply except as modified or excluded in accordance with section 5(4)
	Schedule 3 Specified commercial trusts
	Schedule 4 Amendments consequential on repeal of Trustee Act 1956
	Schedule 5 Amendments consequential on repeal of Perpetuities Act 1964 and abolition of rule against perpetuities
	Notes

The Parliament of New Zealand enacts as follows:

New Zealand Legislation

List of access keys

Quick search

My recent searches

Trusts Act 2019

Trusts Act 2019

Note

Contents