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Trusts Act 2019

Appointment and discharge of trustees - Removal of trustee

104: Compulsory removal of trustee

You could also call this:

"Removing a trustee who can't do their job anymore"

Illustration for Trusts Act 2019

If you have the power to remove a trustee, you must remove them if they can no longer do their job as a trustee. This happens when a trustee loses the capacity to perform their functions and they have not delegated their powers in a way that is allowed by law or the terms of the trust. You can tell if a trustee has lost capacity if they are subject to an order appointing a manager under section 31 of the Protection of Personal and Property Rights Act 1988, or if a trustee corporation is managing their property under section 32 or 33 of that Act or that Act. When a trustee loses capacity, it means they can no longer make decisions or take care of the trust's affairs, so someone else needs to take over their responsibilities.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS76753.

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103: How trustee is removed, or

"How to remove a trustee from a trust in New Zealand"

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105: Optional removal of trustee, or

"Removing a trustee when it's best for the trust and they're no longer suitable"

Part 5Appointment and discharge of trustees
Removal of trustee

104Compulsory removal of trustee

  1. A person with the power to remove trustees must act to remove a trustee if—

  2. a trustee loses the capacity to perform the functions of a trustee; and
    1. that trustee’s powers have not been delegated in a manner authorised by an enactment or by the terms of the trust.

      1. For the purposes of subsection (1)(a), and without limiting that paragraph, a person loses the capacity to perform the functions of a trustee if the person—

      2. is subject to an order appointing a manager under section 31 of the Protection of Personal and Property Rights Act 1988; or
        1. has a trustee corporation managing the person’s property under section 32 or 33 of that Act.