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New Zealand law explained for everyone

Trusts Act 2019

Trustees’ powers and indemnities - Trustees’ indemnities

84: Power of court to waive requirement of consent to indemnification

You could also call this:

"Court can decide to let trustees use trust money without your agreement"

Illustration for Trusts Act 2019

If you are a beneficiary of a trust, you normally have to agree if a trustee wants to use trust money to pay for something they did wrong. The court can decide you do not have to agree to this. The court can make this decision if someone asks them to, like the trustees or someone who benefits from the trust. You can find more information about when a trustee can use trust money to pay for something they did wrong under section 82.

When the court is thinking about making this decision, they have to consider how it will affect you and others who have an interest in the trust. They also have to think about whether making this decision will be good or bad for you and others. If possible, the court will try to figure out what the person who set up the trust wanted.

If the court makes this decision, it will apply to you without you having to do anything else.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS47239.

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83: Power of court to approve indemnification, or

"Courts can help protect trustees from financial loss if they make a mistake with trust property."

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Part 4Trustees’ powers and indemnities
Trustees’ indemnities

84Power of court to waive requirement of consent to indemnification

  1. The court may waive the requirement that a beneficiary consent to the indemnification of a trustee for a breach of trust under section 82.

  2. An application for an order of waiver of consent may be made by—

  3. the trustees or any one of them:
    1. any person with a beneficial interest in the trust property.

      1. On an application for an order of waiver of consent, the court must take into account each of the following factors:

      2. the nature of any person’s interest in the trust property and the effect of the proposed order on that interest:
        1. the benefit or detriment that may result to any person with an interest in the trust property if the court makes or refuses to make the proposed order:
          1. the intentions of the settlor of the trust in settling the trust, if it is practicable to ascertain those intentions.

            1. An order of waiver of consent binds the person on whose behalf it is made and takes effect without any further step.