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Trusts Act 2019

Court powers and dispute resolution - Alternative dispute resolution

143: Power of trustee to refer matter to alternative dispute resolution process

You could also call this:

"Trustees can send problems to a special solver if everyone agrees"

Illustration for Trusts Act 2019

If you are a trustee, you can send a problem to a special process to help solve it, if everyone involved agrees. This can happen when the trust rules do not say what to do in this situation. You need to get agreement from each person involved in the problem.

When you are dealing with a problem outside of the trust, the people who benefit from the trust are not considered part of the problem. You can still send the problem to the special process with the agreement of the people involved. The special process is called an alternative dispute resolution, or ADR, process.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383086.

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142: Definitions for purposes of sections 143 to 148, or

"What special words mean in sections 143 to 148 of the Trusts Act 2019"

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144: ADR process for internal matter if trust has beneficiaries who are unascertained or lack capacity, or

"Helping unknown or vulnerable beneficiaries in a trust dispute"

Part 7Court powers and dispute resolution
Alternative dispute resolution

143Power of trustee to refer matter to alternative dispute resolution process

  1. This section applies if there is no provision in the terms of a trust that requires or empowers a trustee to refer a matter to an ADR process.

  2. A trustee may, with the agreement of each party to the matter, refer the matter to an ADR process.

  3. For the purposes of this section, a beneficiary is not a party to an external matter.