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Trusts Act 2019

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

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

You could also call this:

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

Illustration for Trusts Act 2019

You can give someone else the power to make decisions for you as a trustee in certain situations. This can happen when you are away from New Zealand, cannot be contacted, are physically unable to make decisions, or do not have the ability to perform your duties as a trustee. You can give this power to someone who is qualified to be a trustee under section 96.

When you give someone this power, it starts when the situation arises and lasts for as long as the situation continues, or for 12 months, whichever is shorter. If the situation is still happening after 12 months, you or your delegate can extend the power for a further 12 months, or for as long as the situation continues, whichever is shorter.

You can only give this power to a sole co-trustee if they are a statutory trustee. The person you give the power to can make decisions on your behalf, and they can even decide to resign as your delegate. They have the power to do what you would do as a trustee, as long as the situation that made you give them the power still exists.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382968.

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

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

  1. Despite sections 67 and 68, a trustee may, by power of attorney, delegate all or any of the trustee’s powers and functions under the trust to any person qualified to be a trustee under section 96.

  2. However, the power to delegate may be exercised only in the circumstances where the delegation is necessary (or the trustee expects that it may from time to time become necessary) because of the trustee’s—

  3. absence from New Zealand; or
    1. temporary inability to be contacted; or
      1. temporary physical incapability; or
        1. temporary lack of capacity to perform the functions of a trustee.

          1. The delegation—

          2. commences when the circumstance in subsection (2) occurs or begins; and
            1. continues for the shorter of—
              1. the duration of the circumstance in subsection (2); and
                1. 12 months.

                2. If a delegation has been in place for 12 months and the circumstance in subsection (2) continues, the delegation may be extended by the delegating trustee (or the trustee’s delegate in cases to which subsection (2)(d) applies) for the shorter of—

                3. the remaining duration of the circumstance in subsection (2); and
                  1. a further 12 months.

                    1. A trustee may delegate powers to a sole co-trustee only if that sole co-trustee is a statutory trustee.

                    2. A delegate may exercise the delegating trustee’s power to resign.