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Trusts Act 2019

Court powers and dispute resolution

136: Trustee may apply to court to allow distribution of missing beneficiaries’ shares

You could also call this:

"Trustees can ask a court to distribute trust property if a beneficiary is missing"

Illustration for Trusts Act 2019

If you are a trustee, you can ask the court to let you distribute trust property. The court can say yes if you are asking about a beneficiary who is missing or cannot be found. The court will decide as if the missing beneficiary does not exist or has died. The court will only make this decision if you have taken reasonable steps to tell the missing beneficiary about their potential share. You must have done this at least 60 days before asking the court. You must also show the court that no missing beneficiary has come forward to claim their share, or that their claim can be ignored in the circumstances, you can find more information by looking at the Trusts Act 2019 and other related laws such as s 76.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383063.

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Part 7Court powers and dispute resolution

136Trustee may apply to court to allow distribution of missing beneficiaries’ shares

  1. The court may, on application by a trustee, make an order authorising the trustee to distribute trust property—

  2. as if a potential beneficiary or a class of potential beneficiaries does not exist or never existed or has died before a date or an event specified; and
    1. if, because of the order, it is not possible or practicable to determine whether any condition or requirement affecting a beneficial interest in the property or any part of it has been complied with or fulfilled, as if that condition or requirement had been or had not been complied with or fulfilled.

      1. The court may make an order only if it is satisfied that—

      2. reasonable measures have been taken to bring to the notice of the potential beneficiary or beneficiaries their potential beneficial interest or interests; and
        1. at least 60 days have passed since the last of those measures was taken; and
          1. no potential beneficiary with respect to whom an order is sought has come to the attention of the trustee as a result of those measures, or the claim of any such beneficiary may be disregarded in the circumstances.

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