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Trusts Act 2019

Trustees’ powers and indemnities - Powers of trustee - Special trust advisers

75: Reliance on special trust adviser’s advice

You could also call this:

"Trustees are protected if they follow a special trust adviser's advice honestly and carefully"

If you are a trustee with a special trust adviser, you can ask them for advice on trust matters. You do not have to follow their advice, though. If you do follow their advice and something goes wrong, you will not be liable unless you acted dishonestly, were wilfully misconducting yourself, or were grossly negligent (see section 44, which explains how the court considers gross negligence).

If a special trust adviser disagrees with something you want to do with the trust property, this does not affect how others deal with you on the matter. You can still make decisions about the trust property.

When you make a decision based on a special trust adviser's advice, you are generally protected from being sued by beneficiaries, as long as you acted in good faith and did not act dishonestly or with gross negligence.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382976.

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74: Role and appointment of special trust advisers, or

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Part 4Trustees’ powers and indemnities
Powers of trustee: Special trust advisers

75Reliance on special trust adviser’s advice

  1. If there is a special trust adviser, a trustee—

  2. may consult the special trust adviser on any matter relating to the trust; and
    1. is not required to follow the special trust adviser’s advice; and
      1. is not liable in a proceeding brought by or on behalf of a beneficiary for an act or omission the trustee makes as a result of following the special trust adviser’s advice unless the act or omission involves the trustee’s dishonesty, wilful misconduct, or gross negligence (see section 44, which relates to the court’s consideration of gross negligence).

        1. A special trust adviser’s disagreement with or objection to a proposed action to be taken by a trustee in respect of trust property does not affect a person dealing with the trustee in the matter.

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