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Trusts Act 2019

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

66: Trustee not liable for certain losses in relation to amounts paid or applied for beneficiary’s welfare

You could also call this:

"Trustees are not responsible for losses when using money to help someone, in certain situations."

Illustration for Trusts Act 2019

If you are a trustee, you are not responsible for any loss that happens when you pay or use money for a beneficiary's welfare in certain situations. This includes if the loss happens because you did not set enough conditions, as outlined in section 65, when you paid or used the money. You are also not responsible if the loss happens because you did not take enough security, or if you failed to protect the security, or if you released the security without getting paid.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382961.

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65: Trustee may impose conditions on payment for beneficiary’s welfare, or

"A trustee can add rules to money given to help someone, like paying it back or adding interest."

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67: Trustee’s power to appoint others to exercise or perform certain powers or functions, or

"Trustees can choose someone to help with certain trust jobs, but not all decisions."

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

66Trustee not liable for certain losses in relation to amounts paid or applied for beneficiary’s welfare

  1. A trustee is not liable for any loss that may be incurred in relation to an amount that is paid or applied for a beneficiary’s welfare if the loss arises—

  2. because of a failure to impose any or adequate conditions under section 65; or
    1. without limiting paragraph (a), because of a failure to take security or adequate security; or
      1. because of a failure to take action for the protection of the security (including a failure to exercise a right to enforce the security); or
        1. through the release or abandonment of the security without payment; or
          1. from any other matter in relation to the conditions imposed or the waiver of any condition.

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