Part 4Trustees’ powers and indemnities
Powers of trustee: Other powers and rights of trustee
79Trustee’s liability limited where notice given to distribute trust property without regard to unknown claims
A trustee is not liable in a proceeding brought by or on behalf of a person in relation to the distribution of trust property if—
- the trustee has first given a notice to potential creditors and other claimants in accordance with subsection (2); and
- the distribution is made after the notice deadline mentioned in subsection (2)(c); and
- the trustee did not have notice of the person’s claim at the time of the distribution.
A notice to potential creditors and other claimants must—
- be given in a manner likely to come to their attention; and
- identify the trust or estate affected; and
- state that any creditor or other claimant who asserts a right or an interest relating to that trust property must give notice of their claim to the trustee before a date specified in the notice that is at least 30 days after the date the notice is given (the notice deadline); and
- set out the physical and email addresses to which a notice of claim and details of a claim may be sent or delivered; and
- state that the proposed distribution may be made without regard to any claim of which the trustee does not have notice before the notice deadline.
A trustee may apply to the court for directions under section 133 regarding the type of notice that is appropriate.
This section does not apply to any claim—
- under the Family Protection Act 1955; or
- under the Law Reform (Testamentary Promises) Act 1949; or
- arising out of any contract—
- to make a will containing certain provisions; or
- not to revoke an existing will or a specified provision within a will; or
- not to make a will; or
- to make a will containing certain provisions; or
- by a person to be—
- a beneficiary under a will; or
- entitled in the intestacy of a deceased person; or
- beneficially interested under a trust.
- a beneficiary under a will; or
Nothing in this section affects a remedy that a person may have under section 49(1) of the Administration Act 1969 or any other right or remedy available against another person other than the trustee, including a right to follow the property and any money or property into which it is converted.
Compare
- 1956 No 61 s 35