Trusts Act 2019

Appointment and discharge of trustees - Power to remove or to appoint trustee

92: Who may remove trustee and appoint replacement

You could also call this:

"Who can remove or replace a trustee in a trust"

Illustration for Trusts Act 2019

You can remove a trustee in writing if you are one of the following people: the person chosen by the trust to have this power, the remaining trustees if there is no one chosen or they cannot act, or certain other people like a property manager or a person with an enduring power of attorney. You can find more information about removing a trustee in section 103. These people can remove a trustee if they are acting in relation to the trustee being removed.

You can appoint a new trustee in writing if you are one of the following people: the person chosen by the trust to have this power, the remaining trustees if there is no one chosen or they cannot act, or the retiring trustee in some cases. In other cases, the person who can appoint a new trustee is the person who can remove a trustee. If a trustee dies, the new trustee can be appointed by the person chosen by the trust, the remaining trustees, or the executor or administrator of the trustee.

There are some limits to who can appoint or remove a trustee and when they can do it. The trust's terms will say who has the power to appoint or remove a trustee and in what circumstances. You cannot appoint or remove a trustee for any reason or in any situation that is not specified in the trust's terms.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383004.


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93: Person with power to remove or appoint trustee may apply to court for directions, or

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Part 5Appointment and discharge of trustees
Power to remove or to appoint trustee

92Who may remove trustee and appoint replacement

  1. The following persons have the power to remove a trustee in writing under section 103:

  2. the person nominated in the terms of the trust as having the power to remove trustees:
    1. if there is no person authorised under paragraph (a) or the person is unable or unwilling to act, the remaining trustees:
      1. if there is no person authorised under paragraph (a) or (b) or the person or persons are unable or unwilling to act, any of the following persons acting in relation to the trustee being removed that may be relevant:
        1. a property manager appointed under the Protection of Personal and Property Rights Act 1988 to act as manager of the trustee’s property:
          1. a person holding an enduring power of attorney over the property of a trustee who is mentally incapable:
            1. the liquidator of a corporate trustee that is in liquidation.
            2. The following persons have the power to appoint a replacement trustee in writing:

            3. in the case of an appointment to replace a retiring trustee,—
              1. the person nominated in the terms of the trust as having the power to appoint trustees:
                1. if there is no person authorised under subparagraph (i) or the person is unable or unwilling to act, the remaining trustees:
                  1. if there is no person authorised under subparagraph (i) or (ii) or the person is unable or unwilling to act, the retiring trustee:
                  2. in the case of an appointment to replace a trustee who has been removed,—
                    1. the person nominated in the terms of the trust as having the power to appoint trustees:
                      1. if there is no person authorised under subparagraph (i) or the person is unable or unwilling to act, a person with the power to remove a trustee under subsection (1)(b) or (c):
                      2. in the case of an appointment of a trustee to replace a trustee who dies while in office,—
                        1. the person nominated in the terms of the trust as having the power to appoint trustees:
                          1. if there is no person authorised under subparagraph (i) or the person is unable or unwilling to act, the remaining trustees:
                            1. if there is no person authorised under subparagraph (i) or (ii) or the person is unable or unwilling to act, the executor or administrator of the trustee.
                            2. Subsection (4) applies to a person nominated in the terms of a trust as having the power to appoint or to remove trustees for a limited purpose or in specified circumstances only.

                            3. This section does not authorise the person to exercise a power to appoint or remove a trustee for any purpose or in any circumstances beyond those specified in the terms of the trust.