This book is only available in PDF format

Authors: Greg Kelly, Kimberly Lawrence
Published: 19 August 2020
Pages: 23

Introduction

Trusts Act 2019 (the Act) comes into force on 30 January 2021. The Act will have a significant impact on beneficiaries’ rights to information, beneficiaries’ access to courts and to review trustee decision-making, trustees’ options during disputes, and protections for trustees in relation to particular criticism of their actions and during disputes.

The Act applies to family trusts and other private trusts, will trusts and intestacies, charitable trusts (to the extent they are not first governed by other legislation), and Māori land trusts (to the extent they are not first governed by the Te Ture Whenua Māori Act 1993).

This paper is structured as follows:

1. Introduction;
2. Trust information and documentation (trustees’ obligations, the disclosure process, disclosure of information during litigation);
3. Beneficiaries’ rights (audits, reviewing trustees’ decisions, reviewing exercise of power to appoint or remove trustees);
4. Trustees’ protections (investment, indemnities, the court’s power to relieve from liability, remuneration, notices barring claims, applications for directions);
5. Trustees’ costs in litigation (Beddoe applications, costs on Beddoe applications, application of trustees’ indemnities to litigation costs, the possible impact of the Trusts Act 2019 on costs decisions);
6. Alternative Dispute Resolution; and
7. The Family Court jurisdiction.

This paper reviews the more significant changes in the legislation insofar as these relate to trustees’ and beneficiaries’ rights during disputes, how disputes will be conducted in court, and new provisions relating to alternative dispute resolution and the jurisdiction of lower courts. Some of the items in this paper have been addressed in the earlier papers in this series, however to ensure this paper is a standalone guide, they have also been canvassed in this paper.

Content outline

• Trust Information and Documentation
• Beneficiaries' Rights
• Trustees' Protections
• Trustees' Litigation Costs
• Alternative Dispute Resolution
• Jurisdiction of Family Court