You can create an express trust in two ways. You can create one under a law or enactment, or a person can create one. This person is called the settlor.

When a settlor creates a trust, they must clearly say they want to create a trust. They must also say who the beneficiaries are, or what the trust is for. The settlor must identify what property belongs to the trust.

A trust is started when a trustee has control of the trust's property. This happens according to subsection (1), which explains how to create an express trust.

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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=DLM7382881.

Topics:

Money and consumer rights > Banking and loans

14: Sole trustee cannot be sole beneficiary, or

"If you're in charge of a trust alone, you can't be the only one who gets benefits from it."

16: Maximum duration of trust, or

"A trust can last for a maximum of 125 years, unless it's a special kind of trust."

Part 2Express trusts

15Creation of express trust

An express trust may be created—
by or under an enactment; 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.

A trust created under subsection (1) commences when a trustee holds property of the trust.