Trusts Act 2019

Miscellaneous provisions - Transfer to the Crown

151: Administration by the Crown of transferred property

You could also call this:

"What happens when the government looks after property that belongs to someone else"

When property is transferred to the Crown, the Secretary to the Treasury must look after it. The Secretary must put trust money into a special bank account called a Trust Bank Account, which is set up under section 67 of the Public Finance Act 1989. This account is used to hold money that belongs to a trust.

The Secretary must deal with the transferred property in certain ways, such as following a court order or the directions of a person who is entitled to the property. If someone claims they are entitled to part of the property, the Secretary will follow their directions if they are satisfied the person is entitled to it. The Secretary will also return the property to the trustee if the trustee requests it.

The Secretary is not responsible for paying interest on the trust money and can deduct any reasonable costs from payments made. After six years, the Secretary can move the trust money to a Crown Bank Account. If the money is needed to be paid out, it can be paid from this account without needing further approval.

The Crown is not responsible for the property in the same way a trustee is, and you cannot make a claim against the Crown if a payment was made in good faith. This means the Crown will not be held liable if it makes a payment thinking it is doing the right thing.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on 18 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383094.

Topics:

Money and consumer rights > Banking and loansHousing and property > Buying and selling homes

150: Financial products transferred to the Crown, or

"What happens to money when financial products are given to the government"

152: Public notice of property transferred to the Crown, or

"Notice of property given to the government is available online"

Part 8Miscellaneous provisions
Transfer to the Crown

151Administration by the Crown of transferred property

The Secretary to the Treasury must hold trust money transferred to the Crown under section 149 in a Trust Bank Account established under section 67 of the Public Finance Act 1989.
The Secretary to the Treasury must deal with trust property transferred to the Crown under section 149 as follows:
if the court makes an order in relation to the transferred property, in accordance with the order:
if any person claims that the person is the beneficiary entitled to any part of the transferred property and the Secretary is satisfied that the person is so entitled, in accordance with the directions of that person:
if the trustee requests that the transferred property be returned to the trustee, in accordance with the request.

The Secretary to the Treasury is not liable for any interest on the transferred property that is trust money and may deduct from any payment made under subsection (2) any reasonable costs or expenses incurred in connection with the Crown’s administration of the transferred property.
After the expiry of a period of 6 years after the date on which the transferred property was transferred to the Crown, the Secretary to the Treasury may transfer the trust property that consists of trust money to a Crown Bank Account.
Any trust money that is transferred to a Crown Bank Account under subsection (4) and that is required to be paid under subsection (2) may be paid out of the Crown Bank Account without further authority than this subsection.
The Crown is not subject to the duties or liabilities of a trustee in respect of any transferred property, and no claim lies against the Crown or the Secretary to the Treasury if a payment was made under subsection (2) in good faith.

Compare

1956 No 61 s 78