If you have a trust, there are rules about what the people in charge can and can't do. Some trusts might have clauses that try to get around these rules. A clause in a trust is invalid if it tries to do something that is not allowed by section 40 or section 41. This means that if a clause in a trust tries to do something that these sections prohibit, that part of the clause is not valid.
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 It might be out of date or be missing some parts.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=DLM7382921.
41: Restriction on trustee indemnity clauses, or
"Trustees can't use trust property to fix mistakes made on purpose or by being very careless"
43: Adviser must alert settlor to liability exclusion or indemnity clause, or
"People helping you create a trust must warn you about clauses that limit their responsibility."
A clause in the terms of a trust is invalid to the extent that it purports to have the effect prohibited by section 40 or 41.
