Plain language law

New Zealand law explained for everyone

Trusts Act 2019

Trustees’ powers and indemnities - Trustees’ indemnities

89: Protection of trustee in handing over personal property to life tenant

You could also call this:

"Safeguarding the person managing property when they give it to someone for their lifetime"

Illustration for Trusts Act 2019

If someone leaves you personal property, like a house or a car, for your lifetime, the person in charge of managing the property, called the trustee, can give it to you. The trustee can decide the terms and conditions of giving you the property. If you are a child, the trustee can give the property to your parent or guardian. The trustee must make a list of the property, called an inventory, and you must sign it, along with the trustee. The trustee must give you a copy of the inventory and keep one for themselves. After the trustee gives you the property, they do not have to fix it or insure it, and they are not responsible if something happens to the property. A copy of the signed inventory is like a security interest, which is talked about in the Personal Property Securities Act 1999, and a financing statement can be registered because of it.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382998.

Topics:
Money and consumer rights > Banking and loansHousing and property > Buying and selling homes
Previous

88: Trustee’s indemnity for rent, covenant, or agreement under lease, or

"Protection for trustees who pay rent or follow lease rules"

Next

90: Protection of trustee in handing over personal property to child, or

"Trustees are protected when giving personal property to a child or their parents."

Part 4Trustees’ powers and indemnities
Trustees’ indemnities

89Protection of trustee in handing over personal property to life tenant

  1. If personal property is given by will to a person (including a child) for a life interest or another limited interest, the trustee may deliver the personal property to the person (or in the case of a child, to the child’s parent or guardian) on the terms and conditions that the trustee thinks fit.

  2. However, before delivering the personal property to the person, the trustee must—

  3. prepare an inventory of the property; and
    1. ensure that the inventory is signed by the person and by the trustee; and
      1. give the person a copy of the inventory and keep a copy.

        1. On and after the delivery of the property, the trustee—

        2. is not required to repair or insure the property; and
          1. is not liable for any loss or destruction of the property or the failure of the person to repair or insure the property.

            1. A copy of the inventory signed by the person and the trustee is a security interest for the purposes of the Personal Property Securities Act 1999, and a financing statement may be registered accordingly.

            Compare