Trusts Act 2019

• Jurisdiction: New Zealand
• Citation: 2019 No 38
• Reference: 2019 No 38
• Record Number: DLM7382802
• Act Number: 38
• Type of Document: Act

Contenidos

• Trusts Act 2019
• Contents
• 1 Title
• 2 Commencement
• Part 1
• 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
• 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
• Part 1
• 21 Guiding principle in performing 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
• 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
• Part 2
• 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
• Part 3
• 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
• 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
• Part 1
• 56 General powers of trustee
• 57 Status of provisions on specific powers of trustee
• 58 Trustee has power to invest
• 59 Matters which trustee may consider in exercising power to invest
• 60 Power to determine whether return on investment is income or capital
• 61 Apportionment of receipts and outgoings between income and capital
• 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
• 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
• 74 Role and appointment of special trust advisers
• 75 Reliance on special trust adviser’s advice
• 76 Remuneration of special trust advisers
• 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
• 80 Protection of purchasers and mortgagees dealing with trustees
• Part 2
• 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...