Plain language law

New Zealand law explained for everyone

Trusts Act 2019

Trustees’ powers and indemnities - Powers of trustee - Powers to apply trust property for beneficiary’s welfare

62: Trustee’s power to pay or apply income for child beneficiary’s welfare

You could also call this:

"Trustees can use trust money to help a child beneficiary with their wellbeing."

Illustration for Trusts Act 2019

If you are a trustee, you can use some or all of the income from a trust for a child beneficiary's welfare. This means you can pay or apply the income to help the child. You can do this if the child has an interest in the trust property, whether they can use it now or later. You need to think about the child's age and what they need when deciding whether to make a payment and how much to pay. You can pay the money to the child's parent or guardian, or in another way that helps the child.

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 It might be out of date or be missing some parts.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=DLM7382956.

Topics:
Money and consumer rights > Banking and loansFamily and relationships > Children and parenting
Previous

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

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

Next

63: Trustee’s powers with respect to income of child beneficiary, or

"What happens to a child's trust money and how it's used to help them"

Part 4Trustees’ powers and indemnities
Powers of trustee: Powers to apply trust property for beneficiary’s welfare

62Trustee’s power to pay or apply income for child beneficiary’s welfare

  1. A trustee may pay or apply some or all of the income on the interest of the beneficiary in respect of whom this section applies for the beneficiary’s welfare.

  2. This section applies in respect of a beneficiary who is a child with an interest (whether vested or contingent) in some or all of the trust property.

  3. In this section and section 63, income—

  4. means the income on the beneficiary’s interest that arises in the most recent year; and
    1. where they have not been previously paid in respect of the beneficiary but have been accumulated and held for the beneficiary’s entitlement in the future, means the income on the beneficiary’s interest from previous years and the interest earned from the investment of that income; and
      1. where the beneficiary has an absolute interest in an annuity, includes the income from the annuity.

        1. In deciding whether to make a payment and the amount of any payment, the trustee must consider all of the relevant circumstances, including the beneficiary’s age and requirements.

        2. The trustee may make the payment under subsection (1) to the child’s parent or guardian, or in some other manner that is for or toward the beneficiary’s welfare.

        3. This power is subject to any prior interests or charges affecting the income.

        Compare