Trusts Act 2019

General provisions

9: Definitions

You could also call this:

"What special words in the Trusts Act 2019 mean"

When you read the Trusts Act 2019, you will see some words that have special meanings. You need to know what these words mean to understand the Act. The Act explains what these words mean.

The word "adult" means someone who is 18 years or older. You are a child if you are under 18 years old. A "beneficiary" is someone who gets a benefit from a trust. A trust is like a container that holds something, like money or a house, for someone else.

A "charitable purpose" is when someone does something to help others, like giving money to a charity. You can find out more about what a charitable purpose is by looking at section 2 of the Charitable Trusts Act 1957. A "charitable trust" is a trust that helps others.

The "court" means the High Court, which is a place where important decisions are made. A "default duty" is explained in section 28. A "discretionary beneficiary" is someone who might get a benefit from a trust, but it's not guaranteed.

An "express trust" is explained in section 12. A "financial product" is explained in section 7(1) of the Financial Markets Conduct Act 2013. An "incorporated law firm" is explained in section 6 of the Lawyers and Conveyancers Act 2006.

If someone "lacks capacity", it means they can't make decisions for themselves. This can be because they are a child, or because they have a problem that stops them from making decisions. You can find out more about what it means to lack capacity by looking at section 31 of the Protection of Personal and Property Rights Act 1988 or sections 32 and 33 of that Act.

A "mandatory duty" is explained in section 22. A "permitted purpose" is a reason why a trust is allowed to exist. It can be a charitable purpose, or another purpose that is allowed by law.

A "person with the power to appoint trustees" is someone who can choose who will be in charge of a trust. You can find out more about this by looking at section 92(2). A "person with the power to remove trustees" is someone who can fire the people in charge of a trust. You can find out more about this by looking at section 92(1).

A "personal representative" is someone who looks after the things that belong to someone who has died. A "portfolio investment entity" is explained in section YA 1 of the Income Tax Act 2007. A "power of appointment" is when someone has the power to choose who will get a benefit from a trust.

A "security trust" is explained in clause 3 of Schedule 3. A "settlor" is explained in section 15(1)(b). A "specified commercial trust" is explained in clause 1 of Schedule 3.

A "statutory trustee" is a company that is allowed by law to look after the things that belong to someone who has died. The "terms" of a trust are the rules that say how the trust will work. A "trustee" is someone who looks after a trust. A "trustee corporation" is explained in section 2 of the Protection of Personal and Property Rights Act 1988.

The "welfare" of someone means their health, happiness, and well-being. A "wholesale trust" is explained in clause 2 of Schedule 3.

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=DLM7382827.

Topics:

Money and consumer rights > Banking and loansFamily and relationships > Children and parenting

8: Inherent jurisdiction of court not affected, or

"Courts still have the power to oversee trusts, unless the Trusts Act 2019 says otherwise."

10: Transitional, savings, and related provisions, or

"Special rules to help the Trusts Act 2019 work smoothly"

Part 1General provisions

9Definitions

In this Act, unless the context otherwise requires,—
adult means a person aged 18 years or older
beneficiary means a person who has received, or who will or may receive, a benefit under a trust (other than a trust for a permitted purpose), and includes a discretionary beneficiary
charitable purpose means a charitable purpose that relates to the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community, and includes any other purpose within the meaning of charitable purpose in section 2 of the Charitable Trusts Act 1957
charitable trust means a trust the permitted purpose of which is a charitable purpose
child means a person under the age of 18 years
court means the High Court
default duty has the meaning given to it in section 28
discretionary beneficiary means a person who may benefit under a trust at the discretion of the trustee or under a power of appointment but who does not have a fixed, vested, or contingent interest in the trust property
express trust has the meaning given to it in section 12
financial product has the meaning given to it in section 7(1) of the Financial Markets Conduct Act 2013
incorporated law firm has the meaning given to it in section 6 of the Lawyers and Conveyancers Act 2006
insolvency event has the meaning given to it in section 6(4) of the Financial Markets Conduct Act 2013
lacks capacity means, in relation to a beneficiary, that the beneficiary—
1. is a child; or
2. is not competent to manage the beneficiary’s own affairs for any reason, including that the beneficiary—
  1. is subject to an order appointing a manager under section 31 of the Protection of Personal and Property Rights Act 1988; or
  2. has a trustee corporation managing the person’s property under section 32 or 33 of that Act
mandatory duty has the meaning given to it in section 22
permitted purpose, in relation to a trust, means a charitable purpose and any other purpose for a trust that is permitted at law and specified in the terms of the trust
person with the power to appoint trustees means, in any particular case of appointment, a person described in section 92(2) as having the relevant power in that case
person with the power to remove trustees means, in any particular case of removal, a person described in section 92(1) as having the relevant power in that case
personal representative, in relation to a deceased person, means an executor (original or by representation) who has obtained probate or an administrator of the deceased person’s estate appointed by the court
portfolio investment entity has the meaning given to it in section YA 1 of the Income Tax Act 2007
power of appointment means a power to appoint a person to be, or to remove a person from being, a beneficiary of a trust
security trust has the meaning given to it in clause 3 of Schedule 3
settlor has the meaning given to it in section 15(1)(b)
specified commercial trust has the meaning given to it in clause 1 of Schedule 3
statutory trustee means a trustee that is a body corporate and that is authorised under an enactment to act as executor or administrator of a deceased person’s estate and includes a trustee corporation
terms, in relation to a trust, means 1 or more of the following, as the relevant provision expressly, or the context in which it is used, requires:
1. express written terms of the trust:
2. express oral terms of the trust:
3. implied terms of the trust
trustee means a person who is appointed as trustee of a trust
trustee corporation has the meaning given to it in section 2 of the Protection of Personal and Property Rights Act 1988
welfare, in relation to a person,—
1. means the person’s maintenance, education, advancement, benefit, comfort, or well-being; and
2. includes past maintenance or education
wholesale trust has the meaning given to it in clause 2 of Schedule 3.