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Trusts Act 2019

Trustees’ powers and indemnities - Powers of trustee - Power to determine treatment of returns and accounts

60: Power to determine whether return on investment is income or capital

You could also call this:

"Deciding if trust investment money is income or capital"

Illustration for Trusts Act 2019

When you are dealing with a trust, you need to figure out how to share the money it makes. A trustee can decide if the money made from an investment is income or capital when they are sharing it out or making a financial statement for the trust. This means the trustee gets to choose how to treat the return on an investment for the trust's financial records.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382953.

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

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

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61: Apportionment of receipts and outgoings between income and capital, or

"How trustees can fairly split money between income and capital accounts"

Part 4Trustees’ powers and indemnities
Powers of trustee: Power to determine treatment of returns and accounts

60Power to determine whether return on investment is income or capital

  1. For the purposes of distribution, and of preparing and completing a financial statement for a trust, a trustee may determine whether a return on an investment is to be treated as income or capital.