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Trusts Act 2019

Trustees’ duties and information obligations - Trustees’ obligations to keep and give trust information - Giving information to beneficiaries

54: Procedure when trustee decides to give no information

You could also call this:

"What happens if a trustee decides not to give you information about a trust?"

Illustration for Trusts Act 2019

If you are a beneficiary of a trust, you might not always get information about the trust. This can happen for a few reasons. You might not get information if the trustee cannot find any beneficiaries to give it to, or if the trustee decides not to give out certain information as stated in section 51(2)(b) or section 52(2).

The trustee must then ask the court for help to figure out if their decision is fair and to find another way to be accountable. The court will look at whether it is reasonable for the trustee to withhold information from you.

The trustee does not need to ask the court for help if they do not give you information for less than 12 months and then give you the basic information after that time. When the court makes a decision, they must think about whether it is fair to keep information from beneficiaries and whether the trust can still work properly without giving out that information.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382943.

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"How trustees decide whether to give you information about a trust"

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Part 3Trustees’ duties and information obligations
Trustees’ obligations to keep and give trust information: Giving information to beneficiaries

54Procedure when trustee decides to give no information

  1. This section applies in relation to a trust if, as a result of 1 or more of the following circumstances or events, no beneficiary has any trust information:

  2. the trustee cannot identify any beneficiary to whom information can be given:
    1. the trustee decides under section 51(2)(b) to withhold all of the basic trust information from all beneficiaries:
      1. the trustee decides under section 52(2) to refuse a request for trust information.

        1. The trustee must apply to the court for directions in relation to—

        2. whether the trustee’s determination that there is no beneficiary to whom information can be given, or to withhold information or refuse a request for information, is reasonable in the circumstances; and
          1. the alternative means by which the trustee can be accountable and the trust can be enforced.

            1. However, the trustee is not required to apply to the court for directions if—

            2. the period during which no beneficiary has any trust information is less than 12 months; and
              1. at the end of that period, the trustee gives to at least 1 beneficiary of the trust the basic trust information.

                1. In giving directions under this section, the court must take into account the following principles:

                2. trust information may be withheld from all beneficiaries only in exceptional circumstances:
                  1. alternative means of enforcing a trust pending disclosure of information to beneficiaries must be consistent with the objectives of the trust and not adversely affect its administration.