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New Zealand law explained for everyone

Trusts Act 2019

Appointment and discharge of trustees - Replacement of trustee

114: Court may appoint or replace trustee

You could also call this:

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

Illustration for Trusts Act 2019

The court can appoint a new trustee when it is necessary or desirable and it is hard to do without the court's help. You can think of a trustee as someone who helps manage things for others. The court can make an order to appoint a new trustee in these situations.

When the court is thinking about appointing Public Trust as the new trustee, it must give Public Trust a chance to have a say in the matter. If the court appoints Public Trust as the new trustee, except in certain situations related to a supervisor as defined in section 6(1) of the Financial Markets Conduct Act 2013, Public Trust has to accept the appointment.

Public Trust can also charge fees for acting as the trustee in these cases. The court cannot use this power to appoint an executor or administrator, which are different roles.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383031.

Topics:
Money and consumer rights > Banking and loans
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113: How trustee is replaced, or

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

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115: Replacing sole trustee with multiple trustees, or

"Swapping one trustee for a team of new ones when the old one leaves or passes away"

Part 5Appointment and discharge of trustees
Replacement of trustee

114Court may appoint or replace trustee

  1. Whenever it is necessary or desirable to appoint a new trustee and it is difficult or impracticable to do so without the assistance of the court, the court may make an order appointing a new trustee.

  2. However, this section does not empower the court to appoint an executor or administrator.

  3. If the court proposes to appoint Public Trust as the replacement trustee, the court must, before making the appointment, give Public Trust an opportunity to be heard on the matter.

  4. If the court (except on application by a supervisor within the meaning of section 6(1) of the Financial Markets Conduct Act 2013) appoints Public Trust as the replacement trustee, Public Trust—

  5. must accept the appointment; and
    1. may charge fees for acting as trustee.

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