If you are a trustee, you cannot use the terms of a trust to avoid being liable for certain actions. You are liable if you act dishonestly, or if you deliberately do something wrong, or if you are very careless. This means you are responsible for your actions as a trustee if you breach the trust in one of these ways.
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 It might be out of date or be missing some parts.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
View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382919.
39: Adviser must alert settlor to modification or exclusion of default duty, or
"Tell the person creating a trust if you change the trust's standard rules"
41: Restriction on trustee indemnity clauses, or
"Trustees can't use trust property to fix mistakes made on purpose or by being very careless"
The terms of a trust must not limit or exclude a trustee’s liability for any breach of trust arising from the trustee’s dishonesty, wilful misconduct, or gross negligence.
