TrustAct 2019

Question 1

Why reform?

Answer 1

The Trustee Act 1956 was almost 70 years old
There are a lot of trusts in New Zealand
New law makes trusts more accessible

Question 2

An express trust can be inter vivos

Answer 2

Intended to take effect twill the person is still alive… OR

Question 3

An express trust can be testamentary

Answer 3

In a will, intended to take effect after death

Question 4

An express trust can be created:

Answer 4

In writing ( a trust deed)
Verbally

Question 5

An express trust can be fixed

Answer 5

Pre-determined individuals or clases of individuals in which each is entitled in equity to a fixed share;… OR

Question 6

A fixed trust can be discretionary

Answer 6

Trustee can detemine beneficiaries and/or size of their shares, until the trustee, trustees exercise discretion, potential beneficiaries don’t yet have rights to trust property itself

Question 7

S 13

Answer 7

Sets out characteristics of an express trust.
- Fiduciary
- Trustee accountable for the way the trustee carries out the duties imposed on them by law

Question 8

S 14

Answer 8

A sole trustee of a trust must not be the SOLE beneficiary of the trust

Question 9

S 15

Answer 9

An express trustee may be created:
By or under enactment (public trusts); or
By a person (the settlor) who, clearly and with reasonable certainty (and subject to any formalities prescribed by any enactment)
1. Indicates an intention to create a trust; and
2. Identifies the beneficiaries (or classes of beneficiaries) or the permitted purpose of the trust; and
3. Identifies the trust property

Question 10

S 16

Answer 10

Max duration is 125 years

Question 11

S 96

Answer 11

A trustee cannot be: a child, an undischarged bankrupt, a person who lacks capacity to eprform the functions of trustee (usually medical in nature), a body corporate that is going insolvent

Question 12

Trust Act 2019 relationship with the terms of trust

Answer 12

Generally terms of Trust Act 2019 will prevail over the terms if the trust unless the act allows the provision to be modified or excluded by the terms of the trust s 5(4)-(6)

Question 13

Trust Act 2019 relationship with other laws

Answer 13

Is intended to be complemented by the rules of the common law and equity relating to trusts (except where otherwise indicated or where those rules are inconsistent with the provisions of this Act)

Other enactments will generally prevail over Trusts Act (s 5(9)): “if there is an inconsistency between the provisions of this Act and those of any other enactment, the provisions of that other enactment prevail, unless this Act provides otherwise.”