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Trusts Act 2019

Termination and variation of trusts

125: Power of court to waive requirement of consent to termination, variation, or resettlement of trust

You could also call this:

"The court can change or end a trust without everyone's agreement if it's a good idea."

Illustration for Trusts Act 2019

The court can decide to let a trust end, change, or be reset without everyone's agreement. You can find more information about ending a trust in section 121 and changing or resetting a trust in section 122. The court makes this decision if someone asks them to.

If you want the court to make this decision, you can ask them if you are a trustee or someone who benefits from the trust. The court thinks about how their decision will affect everyone involved and what the person who set up the trust wanted.

The court also considers whether their decision will help or hurt anyone with an interest in the trust. They look at what the person who set up the trust intended to happen, if that's possible to figure out. The court cannot make a decision that would take away something that already belongs to someone.

If the court does make a decision, it affects the person it's made for and happens right away.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383051.

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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."

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"The court can check if a trustee is being fair and making good decisions."

Part 6Termination and variation of trusts

125Power of court to waive requirement of consent to termination, variation, or resettlement of trust

  1. The court may waive the requirement that a beneficiary consent to the termination of a trust under section 121 or the variation or resettlement of a trust under section 122.

  2. An application for an order of waiver of consent may be made by—

  3. the trustees or any one of them:
    1. any person with a beneficial interest in the trust property.

      1. On an application for an order of waiver of consent, the court must take into account each of the following factors:

      2. the nature of any person’s interest in the trust property and the effect of the proposed order on that interest:
        1. the benefit or detriment that may result to any person with an interest in the trust property if the court makes or refuses to make the proposed order:
          1. the intentions of the settlor of the trust in settling the trust, if it is practicable to ascertain those intentions.

            1. The court must not make an order of waiver of consent if its effect would be to reduce or remove any vested interest in the trust property.

            2. An order of waiver of consent binds the person on whose behalf it is made and takes effect without any further step.