Trusts Act 2019

Court powers and dispute resolution

132: Court may make beneficiary indemnify trustee for breach of trust

You could also call this:

"Court can make you pay if you make a trustee do something wrong"

Illustration for Trusts Act 2019

If you are a beneficiary of a trust and you ask a trustee to do something that is not right, the court can get involved. The court can make a decision to protect the trustee if they think it is fair. This means the trustee might not have to pay for any mistakes they made, and instead you might have to pay from your share of the trust property, you can find more information about this by looking at the Trustee Act 1956.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383059.


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131: Court may relieve trustee from personal liability, or

"Court can help a trustee who made an honest mistake by reducing or removing their payment responsibility"


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133: Trustee may apply to court for directions, or

"Trustees can ask a court for help making decisions about trust property"

Part 7Court powers and dispute resolution

132Court may make beneficiary indemnify trustee for breach of trust

  1. This section applies if a trustee commits a breach of trust at the instigation or request or with the written consent of a beneficiary.

  2. The court may, if it considers it appropriate, make an order indemnifying the trustee out of the beneficiary’s interest in the trust property.

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