When you have property in a trust, called Trust A, and it is transferred to another trust, this section applies. You need to look at section 16(1) to see if it applies to your trust. If it does, there is a time limit for the property to be finally distributed. The property must be finally distributed within 125 years of being settled on Trust A.

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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=LMS68937.

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Money and consumer rights > Banking and loans

16: Maximum duration of trust, or

"A trust can last for a maximum of 125 years, unless it's a special kind of trust."

18: Accumulation of income by trust, or

"A trust can save its income for later if its rules allow it"

Part 2Express trusts

17Application of maximum duration rule to resettlements

This section applies to property that is held on a trust (Trust A) to which section 16(1) applies and is transferred as a part of a resettlement to be held on 1 or more other trusts without first being finally distributed.
The maximum amount of time that may elapse between the property being settled on Trust A and being finally distributed is 125 years.