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Trusts Act 2019

Termination and variation of trusts

121: Termination of trust by unanimous consent of beneficiaries

You could also call this:

"Ending a trust when all beneficiaries agree"

Illustration for Trusts Act 2019

If you are a beneficiary of a trust, you can ask the trustee to end the trust and give out the trust property. The trustee must do this if all the beneficiaries who own the trust property together ask them to. The trustee will only end the trust if every beneficiary agrees to it and they all ask the trustee to do so. You can ask the trustee in writing, and you must sign the request or have someone authorised to sign it for you.

If one of the beneficiaries is someone who needs the court's help to make decisions, like a child, the court must agree to the trust being ended. The court's agreement is needed to protect the beneficiary's interests. You can find more information about this in section 124(2) and section 124.

When you ask the trustee to end the trust, you must make sure the request is in writing and signed by all beneficiaries. This is to ensure that everyone agrees to the trust being ended. The trustee will then end the trust and give out the trust property as requested.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383042.

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"When you leave a trust, you get documents to prove you're no longer in charge."

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122: Variation or resettlement of trust by unanimous consent of beneficiaries, or

"Changing a trust when all beneficiaries agree to the change."

Part 6Termination and variation of trusts

121Termination of trust by unanimous consent of beneficiaries

  1. A trustee must terminate the trust and distribute the trust property on being required to do so by all of the beneficiaries who together hold all of the beneficial interest in the trust property if the conditions set out in subsection (2) are satisfied.

  2. The conditions for the termination of the trust are that—

  3. every beneficiary consents to requiring the trustee to terminate the trust and distribute the trust property; and
    1. the trustee receives a request to terminate the trust and distribute the trust property from or on behalf of each beneficiary; and
      1. if any of the beneficiaries is a beneficiary described in section 124(2), the court has made an order under section 124 approving the termination of the trust on behalf of that beneficiary.

        1. The condition in subsection (2)(b) is satisfied if—

        2. the beneficiaries provide a written request to the trustee to terminate the trust and distribute the trust property; and
          1. the notice is signed by each beneficiary or by the duly authorised agent of that beneficiary.