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Trusts Act 2019

Trustees’ powers and indemnities - Powers of trustee - Investment powers

59: Matters which trustee may consider in exercising power to invest

You could also call this:

"Things to consider when making investment decisions for a trust"

When you are in charge of a trust, you can think about many things before making investment decisions. You can consider the trust's goals and what it is allowed to do. You can also think about spreading the trust's investments to reduce risk. The type of investments the trust already has and the trust's other property are important to consider.

You need to think about keeping the trust's money safe and making sure it does not lose value. You should consider the risk of losing money and the potential for the investments to increase in value. The amount of income the investment will bring in and how long the investment will last are also important.

You can look at how long the trust will exist and how easy it will be to sell the investment when you need to. The total value of the trust's property and how the investment will affect the trust's tax bill are things to consider. You can also think about how inflation might affect the investment and the trust's overall investment plan.

This list does not include every single thing you can consider, you can think about other matters as well. You can compare this to the Trusts Act 2019 for more 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=DLM7382951.

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58: Trustee has power to invest, or

"A trustee can use trust property to try to make more money or value."

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"Deciding if trust investment money is income or capital"

Part 4Trustees’ powers and indemnities
Powers of trustee: Investment powers

59Matters which trustee may consider in exercising power to invest

  1. A trustee exercising any power to invest may have regard to the following matters, so far as they are appropriate to the circumstances of the trust:

  2. the objectives of the trust or the permitted purpose of the trust:
    1. the desirability of diversifying trust investments:
      1. the nature of existing trust investments and other trust property:
        1. the need to maintain the real value of the capital or income of the trust:
          1. the risk of capital loss or depreciation:
            1. the potential for capital appreciation:
              1. the likely income return:
                1. the length of the term of the proposed investment:
                  1. the probable duration of the trust:
                    1. the marketability of the proposed investment during, and on the expiry of, the term of the proposed investment:
                      1. the aggregate value of the trust property:
                        1. the effect of the proposed investment in relation to the tax liability of the trust:
                          1. the likelihood of inflation affecting the value of the proposed investment or other trust property:
                            1. the trustee’s overall investment strategy.

                              1. This section does not limit the matters that a trustee may take into account.

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