Trusts Act 2019

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

71: Notice of delegation of trustee’s powers and functions

You could also call this:

"Telling others when a trustee gives someone else their job to do"

When a trustee delegates their powers and functions under section 70, you must notify others within 5 working days. You need to tell any co-trustees and people who can remove or appoint trustees about the delegation. This includes the date it started, how long it will last, the delegate's name and contact details, the reason for the delegation, and which powers are being delegated.

If a trustee signs a power of attorney that allows for delegation under section 70, you must notify others within 5 working days. You need to tell any co-trustees and people who can remove or appoint trustees about the date the power of attorney was signed, the delegate's name and contact details, and the circumstances under which the delegation commences.

If you are a sole trustee, you can comply with the notification requirements by telling people who can remove or appoint trustees, or all competent adult beneficiaries, or a representative sample of beneficiaries. However, you do not have to notify beneficiaries if you reasonably consider that they should not be notified, taking into account the factors in section 53.

If you fail to comply with the notification requirements, it does not affect the validity of any acts done or documents executed by the delegate.

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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=DLM7382969.

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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."

72: Trustee’s liability for acts of delegate limited, or

"Trustees are not responsible for what their helpers do, unless they chose them wrongly."

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

71Notice of delegation of trustee’s powers and functions

Not later than 5 working days after a delegation under section 70 commences, the delegating trustee (or, if the trustee is incapable, the delegate) must notify any co-trustees and any person with the power to remove or to appoint trustees of the following:
the date on which the delegation commenced:
the duration of the delegation:
the name and contact details of the delegate:
the reason for the delegation:
which powers are delegated, if only some are delegated.

In the case where a power of attorney authorising delegation under section 70 is signed on the basis that the trustee expects that the delegation may from time to time become necessary (see section 70(2)), the delegating trustee (or, if the trustee is incapable, the delegate) must, not later than 5 working days after the power of attorney is signed, notify any co-trustees and any person with the power to remove or to appoint trustees of the following:
the date on which the power of attorney was signed:
the name and contact details of the delegate:
in which of the circumstances specified in section 70(2) the delegation commences.

For a sole delegating trustee, it is sufficient compliance with subsections (1) and (2) if the trustee (or, if the sole trustee is incapable, the trustee’s delegate) notifies—
any person with the power to remove or to appoint trustees; or
if there is no person authorised under paragraph (a), all competent adult beneficiaries; or
if, in the circumstances, it is unreasonable or impracticable to comply with paragraph (b), a reasonably representative sample of beneficiaries.

However, a trustee or delegate is not required to comply with notification requirements under subsection (3)(b) or (c) if the trustee or delegate reasonably considers, after taking into account the factors in section 53, that beneficiaries should not be notified.
Failure to comply with a notification requirement under this section does not invalidate any act done or document executed by the delegate in favour of a person dealing with a trustee’s delegate.