Trusts Act 2019

Trustees’ powers and indemnities - Powers of trustee - Exercise of trustee powers and functions by others

69: Trustee’s liability for acts of appointee limited

You could also call this:

"A trustee is not responsible for an appointee's mistakes unless the trustee made a mistake too."

If you are a beneficiary, a trustee is not liable for something an appointee does, unless the trustee made a mistake. The trustee must have failed to do their mandatory or default duties when appointing the person under section 67. The trustee must also have failed to do their duties under section 68 for you to hold them liable.

You can hold a trustee liable if they failed to do these things and the appointee did something wrong. The trustee's liability is limited to cases where they did not fulfil their duties. This means the trustee is only liable if they made a mistake in appointing the person or in supervising them.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382967.

Topics:

Money and consumer rights > Banking and loans

68: Trustee’s duties to keep appointments under review and to fulfil general duty of care, or

"Trustees must check and control decisions made by others to ensure they are fair and responsible."

70: Trustee’s power to delegate powers and functions in specified circumstances, or

"Trustees can give someone else the power to make decisions for them in certain situations."

Part 4Trustees’ powers and indemnities
Powers of trustee: Exercise of trustee powers and functions by others

69Trustee’s liability for acts of appointee limited

A trustee is not liable in a proceeding brought by or on behalf of a beneficiary for any act or default of an appointee of the trustee unless the trustee failed—
to fulfil any of the trustee’s mandatory duties or the trustee’s default duties (where applicable) in appointing the person under section 67; or
to fulfil the trustee’s duties under section 68.