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Trusts Act 2019

Court powers and dispute resolution

135: Trustee may apply to court to bar claims

You could also call this:

"A trustee can ask a court to stop someone from making a claim against trust property."

Illustration for Trusts Act 2019

If you are a trustee, you can ask the court to stop someone from making a claim against the trust property. The court can also let you manage the trust property without considering the person's claim. You must tell the person about their claim and give them 90 days to take action in court. The court cannot stop claims made under the Family Protection Act 1955 or applications to cancel a grant of administration. If the court makes an order, it does not affect the rights of beneficiaries to dispute a claim made by the trustee, unless they were part of the court case.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383062.

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"Trustees are protected if they follow a court's instructions, as long as they act honestly."

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Part 7Court powers and dispute resolution

135Trustee may apply to court to bar claims

  1. The court may, on an application by a trustee,—

  2. bar a claim by any person that directly or indirectly affects the trust property, including a claim against the trustee personally; or
    1. authorise the trustee to administer the trust property without regard to the person’s claim.

      1. Before making an application, a trustee must have served on the person, in accordance with the rules of court, a notice—

      2. describing the general nature of the claim as the trustee understands it to be; and
        1. stating that if a legal proceeding is not, within 90 days after the service of the notice, commenced to enforce the claim, a court may bar the claim or authorise the trustee to administer the trust property without regard to it.

          1. The court may not make an order under this section barring—

          2. a claim under the Family Protection Act 1955; or
            1. an application for revocation of a grant of administration.

              1. An order made by the court does not affect the right of any beneficiary of the trust to contest a claim by the trustee to any payment or indemnity from the trust property unless the beneficiary is a party to the proceeding.

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