Trusts Act 2019

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

Divesting and vesting of trust property

116 Divesting and vesting of trust property on change of trustees

(1)

This section applies if—

(a)

a new trustee of a trust is appointed; or

(b)

a trustee of a trust retires or is removed.

(2)

The execution of the document of appointment, removal, or discharge—

(a)

divests the trust property from the persons who were the trustees immediately before the document was executed; and

(b)

vests the property in the persons who become and are the trustees as joint tenants without any conveyance, transfer, or assignment (but subject to any liabilities attaching to the property).

(3)

This section does not affect any lien to which a trustee may otherwise be entitled.

(4)

Subsection (2) is subject to section 117.

(5)

In this section and in section 117, a court order appointing a trustee or removing a trustee without replacement—

(a)

is a document of appointment, removal, or discharge (unless the court otherwise orders); and

(b)

is, for the purposes of section 89 of the Land Transfer Act 2017, a vesting order vesting the trust property in the persons who become and are the trustees (unless the court otherwise orders).