Plain language law

New Zealand law explained for everyone

Trusts Act 2019

Court powers and dispute resolution

138: Court may appoint receiver for trust

You could also call this:

"Court can appoint a helper to manage a trust if needed"

Illustration for Trusts Act 2019

The court can choose a person to help manage a trust if someone asks them to or if they think it's necessary. You might be wondering who can ask the court to do this - it's someone who has an interest in the trust. The court must think it's a good idea and fair to appoint this person.

The court has to make sure the person they choose is qualified to manage a trust. When the court chooses this person, they have to decide what their job will be and how long they will do it. They also have to think about how the person will make decisions about what's important.

If the court gives the chosen person a certain job, the regular trustee can't do that job while the chosen person is in charge. The court has to think about what's fair and what the trust says when making these decisions. You can think of the chosen person like a helper who makes sure the trust is managed properly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383065.

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"The court can pay you for being a good trustee if it's fair."

Part 7Court powers and dispute resolution

138Court may appoint receiver for trust

  1. The court may, on an application by an interested person or on its own motion, appoint a receiver to administer a trust.

  2. The court must be satisfied that the appointment of a receiver to administer the trust is—

  3. reasonably necessary in the circumstances of the trust; and
    1. just and equitable.

      1. Only a person qualified to be a trustee may be appointed under subsection (1).

      2. When appointing a receiver under this section, the court (having regard to the terms of the trust and the interests of justice) must determine—

      3. the extent of the duties and powers of the receiver; and
        1. the duration of the receivership; and
          1. the principles that the receiver is to apply in determining priorities; and
            1. whether the receiver is to be paid from the trust assets.

              1. If a court determines under subsection (4) that a receiver has a power in relation to a trust, the trustee of the trust cannot exercise that power for the duration of the receivership.