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Trusts Act 2019

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

72: Trustee’s liability for acts of delegate limited

You could also call this:

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

Illustration for Trusts Act 2019

If you are a trustee, you are not responsible for what a delegate does, unless you made a mistake when you chose the delegate. You must have followed the rules when you picked the delegate, including doing what section 70 says and taking care as section 29 says. If you did not follow these rules, you might be liable for what the delegate did, which means you could be held responsible in a court case brought by or on behalf of a beneficiary.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382970.

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

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

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73: Application to Public Trust to consent to become delegate, or

"Asking Public Trust to help with a trust when a trustee can't do their job"

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

72Trustee’s liability for acts of delegate limited

  1. The trustee is not liable in a proceeding brought by or on behalf of a beneficiary for any act or default of a delegate appointed under section 70 unless the trustee failed, in appointing the delegate, to fulfil any of the trustee’s mandatory duties or the general duty of care in section 29 (to the extent that it applies).