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Trusts Act 2019

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

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

You could also call this:

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

Illustration for Trusts Act 2019

When you are a child and get money from a trust, the person in charge of the trust, called a trustee, can use that money in certain ways. The trustee can invest the money, as explained in section 62, or they can save it for you. They can also use the money to help you, by making a payment for your welfare, as explained in section 62.

If you have a guaranteed share of the trust and you turn 18, the trustee must give you the money that was being held for you. This also happens if you turn 18 and become entitled to the property that the money came from.

The trustee has to follow these rules to make sure your money is used in a way that helps you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382958.

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

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

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64: Trustee’s power to pay or apply capital for beneficiary’s welfare, or

"Trustees can use trust money to help beneficiaries if it's needed for their wellbeing."

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

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

  1. While a beneficiary is a child, a trustee may use the income on the beneficiary’s interest in 1 or more of the following ways:

  2. invest the income (as defined in section 62):
    1. accumulate the income:
      1. make a payment under section 62 for the beneficiary’s welfare.

        1. If either of the following applies, the trustee must hold the income for the beneficiary absolutely:

        2. the beneficiary’s interest is a vested interest and the child turns 18:
          1. the beneficiary, on turning 18, is entitled to the property from which the income arose.

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