Trusts Act 2019

General provisions

5: Application, and relationship of Act with trust terms, common law and equity, and other enactments

You could also call this:

"How the Trusts Act 2019 applies to trusts and works with other laws and trust rules."

This Act is about trusts that are governed by New Zealand law. You need to know it applies to express trusts, which are trusts created by someone on purpose. It also applies to some trusts that are not express trusts, but are created by a law or enactment, if that makes sense for the trust.

The Act can also be used for other types of trusts, like resulting trusts or constructive trusts, if a court thinks that is necessary. You should be aware that the Act applies to all express trusts, even if the trust says something different, except in some specific cases.

The trust's terms can change or exclude some of the rules in the Act, but only in certain ways and to a certain extent, which is explained in Schedule 2. Some commercial trusts may also have different rules, which are explained in Schedule 3. The trust's terms can also give the trustee more duties and restrictions than the Act does.

The Act does not cover everything about trusts, and it is meant to work together with the common law and equity rules about trusts. If there is a conflict between the Act and another law, the other law wins, unless the Act says otherwise.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382823.

Topics:

Money and consumer rights > Banking and loansHousing and property > Buying and selling homesBusiness > Industry rules

4: Principles, or

"Basic rules to follow when running a trust"

6: Overview of this Act, or

"What the Trusts Act 2019 is about and how it works in New Zealand."

Part 1General provisions

5Application, and relationship of Act with trust terms, common law and equity, and other enactments

This Act applies only to express trusts that are governed by New Zealand law.
However,—
this Act also applies to a trust that is not an express trust but that is created by or under an enactment, if the application of this Act is consistent with the purpose, text, and context of that enactment and necessary for the due administration of the trust; and
a court may, where necessary or appropriate, apply the provisions of this Act to any of the following that are governed by New Zealand law:
1. a resulting trust:
2. a constructive trust:
3. a trust that does not satisfy the definition of express trust but that is recognised at common law or in equity as being a trust.

This Act applies to all express trusts despite anything to the contrary in the terms of a trust, except as provided in subsections (4) to (6).
The application of the provisions of this Act specified in column 1 of the table in Schedule 2 may, subject to the limitations in subsection (5), be modified or excluded by express or implied terms of a trust.
The modifications and exclusions that may be made to the provisions listed in column 1 of the table are limited to the extent specified in column 2.
Schedule 3 provides that the application of certain provisions of this Act is or may be modified or excluded in relation to specified commercial trusts.
The terms of a trust may impose duties and restrictions on a trustee additional to those provided for in this Act.
This Act—
is not an exhaustive code of the law relating to express trusts; and
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).

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.