Trusts Act 2019

Court powers and dispute resolution

128: Court may take into account investment strategy in action for breach of trust

You could also call this:

"Courts consider a trustee's investment plan when deciding if they broke trust rules"

Illustration for Trusts Act 2019

When you are in a situation where a trustee has made an investment and someone thinks they have broken the rules, the court can look at some things to decide if the trustee is liable. The court can consider if the trust investments are spread out in a way that makes sense for the trust. The court can also think about whether the investment was made according to a plan, which is called an investment strategy, and if it followed the rules in section 30 to invest prudently. You can find more information about this by looking at the related laws. The court's decision will depend on the specific circumstances of the trust and the investment that was made.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383055.


Previous

127: Procedure for court’s review of trustee’s act, omission, or decision, or

"How a court checks if a trustee made a fair decision"


Next

129: Court may set off gains and losses arising from investment, or

"Courts can balance investment losses and gains to make things fairer for you."

Part 7Court powers and dispute resolution

128Court may take into account investment strategy in action for breach of trust

  1. In considering whether a trustee is liable, in respect of any investment made by that trustee, for any breach of trust in respect of any duty under section 30 (to invest prudently to the applicable standard), the court may take into account—

  2. whether the trust investments have been diversified, so far as is appropriate to the circumstances of the trust; and
    1. whether the investment was made in accordance with any investment strategy.
      Compare