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Trusts Act 2019

Termination and variation of trusts

123: Beneficiary’s right to share of trust property

You could also call this:

"Getting your fair share of trust property if you're a beneficiary"

Illustration for Trusts Act 2019

If you are a beneficiary of a trust, the trustee must give you your share of the trust property if you are fully entitled to it. You are fully entitled to your share if any conditions set by the trust have been met. The trustee must also be able to transfer the property to you in a suitable form. The trustee will only give you your share if it does not harm the interests of other beneficiaries. If you lack capacity, the rules about getting your share do not apply to you.

When we talk about your share of the trust property, we mean a part of the property that is clearly defined and the trustee does not get to decide who gets it or how much they get. You can get your share if the property can be changed into a form that can be transferred to you. The trustee's job is to make sure everything is fair for all beneficiaries.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383045.

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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."

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124: Power of court to approve termination, variation, or resettlement of trust, or

"The court can help make changes to a trust to make sure it's fair for everyone involved."

Part 6Termination and variation of trusts

123Beneficiary’s right to share of trust property

  1. A trustee must transfer a fixed share of the trust property to the beneficiary of that fixed share if—

  2. the beneficiary is absolutely entitled to that share (for example, because any condition relating to the vesting of that share set by the terms of the trust has been met); and
    1. the property is in a form, or can be changed into a form, that can be transferred to the beneficiary; and
      1. the transfer is not detrimental to the interests of the other beneficiaries.

        1. Subsection (1) does not apply in respect of a beneficiary who lacks capacity.

        2. In this section, fixed share of the trust property means a share of the trust property that is specified or determined, and in respect of which the trustee does not have a discretion regarding to whom or in what proportion the share is distributed.