Trusts Act 2019: Delegation of trustee’s powers

There will be more flexibility for trustees to delegate their powers under the Trusts Act. For example, a trustee will be able to delegate, by power of attorney, that trustee’s powers in circumstances where the delegation is necessary (or the trustee expects that it may from time to time become necessary) because of the trustee’s:

• absence from New Zealand;

• temporary inability to be contacted;

• temporary physical incapability; or

• temporary lack of capacity to perform the functions of a trustee.

The delegation can only continue for the duration of the relevant circumstance or 12 months (whichever is shorter) but can be extended in some circumstances. If there are only two trustees, one trustee cannot delegate its powers to the other trustee unless the other trustee is a statutory trustee (e.g. Public Trust).

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.