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Trusts Act 2019

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

33: Duty not to bind or commit trustees to future exercise of discretion

You could also call this:

"Trustees must not make decisions that limit future trustees' choices"

Illustration for Trusts Act 2019

If you are a trustee, you must not make decisions that will limit the choices of future trustees. You should not bind or commit them to making certain decisions or not making certain decisions in the future. This means you cannot force them to exercise, or not exercise, their discretion in a particular way.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382912.

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32: Duty to consider exercise of power, or

"Think carefully about using your powers as a trustee"

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34: Duty to avoid conflict of interest, or

"Trustees must put the beneficiaries' interests first and not do things that help themselves instead."

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

33Duty not to bind or commit trustees to future exercise of discretion

  1. A trustee must not bind or commit trustees to a future exercise or non-exercise of a discretion.