Trusts Act 2019: Appointment and discharge of trustees

The Trusts Act will streamline the appointment and discharge of trustees.

For example, the Trusts Act:

• sets out the required qualifications of a trustee;

• requires the person with the power to appoint and remove trustees (Appointor) to exercise that power honestly, in good faith and for a proper purpose;

• requires the Appointor to remove a trustee who has lost the capacity to perform the functions of a trustee; and

• provides that a court order appointing or removing a trustee is sufficient for vesting land in the continuing trustees (i.e. that order can be lodged with the registrar of land to register the transfer of the land to the continuing trustees).

Even if the terms of the trust require that the trust has two or more trustees, a statutory trustee (e.g. Public Trust), but not a corporate trustee which is not a statutory trustee, may be appointed as the sole trustee.

We have published A trustee’s guide to the Trusts Act 2019 (Guide) – the above is an extract from the Guide. If you would like a full copy of the Guide, please get in contact with us.

Disclaimer: This publication should not be construed or acted on as legal advice. It is brief and general in nature. Specific advice should be sought.