Trusts Act 2019

Appointment and discharge of trustees - Replacement of trustee

113: How trustee is replaced

You could also call this:

"Replacing a Trustee: What Happens When One Retires, is Removed, or Dies"

If you are dealing with a trust and a trustee retires, is removed, or dies, you might need to replace them. This happens if the trustee was the only one, or if the trust's rules say you need to replace them. In this case, the person who can appoint new trustees must choose a replacement. If the trust still has enough trustees after one retires, is removed, or dies, the person who can appoint new trustees can choose to replace them, but they do not have to. When a trustee is replaced because they were removed, the new trustee starts their job only when the removal officially happens, as explained in section 107(2) or (3), 108(2), or 112.

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This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383030.

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112: Court may make order for removal, or

"The court can help remove a trustee if it's really needed and can't be done easily."

114: Court may appoint or replace trustee, or

"The court can choose a new person to help manage things for others when it's really needed."

Part 5Appointment and discharge of trustees
Replacement of trustee

113How trustee is replaced

If a trustee retires or is removed or dies while in office and it is necessary (because the trustee was a sole trustee or because the terms of the trust require it) to replace the trustee, a person with the power to appoint trustees must appoint a replacement trustee.
If a trustee retires or is removed or dies while in office and it is not necessary to replace the trustee (because the number of remaining trustees meets or exceeds the minimum number specified in the terms of the trust), a person with the power to appoint trustees may, but need not, appoint a replacement trustee.
The appointment of a trustee to replace a trustee who has been removed takes effect only when the removal takes effect under section 107(2) or (3), 108(2), or 112.