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Trusts Act 2019

Trustees’ duties and information obligations - Duties of trustee - Mandatory duties

27: Duty to exercise powers for proper purpose

You could also call this:

"Trustees must use their powers for the right reasons, not for personal gain."

Illustration for Trusts Act 2019

When you are a trustee, you have to use your powers for the right reasons. You must do what is best for the trust, not for yourself. This means you have to exercise your powers for a proper purpose.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382906.

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26: Duty to act for benefit of beneficiaries or to further permitted purpose of trust, or

"Trustees must make decisions to help the people who benefit from the trust or achieve its purpose."

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28: Default duties, or

"What trustees must do: important jobs they have to follow"

Part 3Trustees’ duties and information obligations
Duties of trustee: Mandatory duties

27Duty to exercise powers for proper purpose

  1. A trustee must exercise the trustee's powers for a proper purpose.