The Trusts Act 2019
How the Trusts Act 2019 Affects Your Family Trust
The Trusts Act 2019 replaced over 60 years of trust law in New Zealand. If your trust deed was signed before 30 January 2021, it almost certainly needs reviewing.
What Has Changed?
The Trusts Act 2019 came into force on 30 January 2021. Here are the key changes that affect most family trusts.
For the first time, trustee duties are set out in legislation rather than just case law. Trustees must know the terms of the trust deed, act honestly and in good faith, act for the benefit of beneficiaries (or the purpose of the trust), and exercise reasonable care and skill. These duties cannot be excluded or modified by the trust deed.
Beneficiaries now have a presumptive right to basic trust information — including the fact that they are a beneficiary, the name and contact details of the trustees, and the terms of the trust deed. Trustees can withhold information in certain circumstances, but the default position is disclosure. Many older trust deeds have "no disclosure" clauses that are no longer enforceable.
The maximum duration of a trust has been extended from 80 years to 125 years. Existing trusts can opt in to the longer period by amending the trust deed. This is particularly relevant for multi-generational trusts and trusts that were approaching the end of their original term.
Trust deeds can no longer include clauses that exempt trustees from liability for gross negligence, wilful misconduct, or dishonesty. Many older trust deeds contain broad exemption clauses that may now be unenforceable or could create a false sense of security for trustees.
Trustees are now required by law to keep core trust documents — including the trust deed, all variations, records of trust property, financial statements, and records of trustee decisions. If you haven't been keeping proper records, now is the time to start.
The Act provides new mechanisms for resolving disputes between trustees and beneficiaries, including court-ordered reviews of trustee decisions. This gives beneficiaries more practical options for holding trustees to account.
What Should You Do?
Review Your Trust Deed
Check whether your trust deed was written before the Act. If so, it almost certainly needs updating to comply with the new requirements.
Understand Your Duties
If you're a trustee, make sure you understand your new mandatory duties — including disclosure obligations to beneficiaries.
Get Professional Advice
A trust review will identify what needs changing and what it will cost. We provide a clear report with practical recommendations.
Is your trust up to date with the Trusts Act 2019?
Request a trust review — we'll tell you what needs updating and provide a clear quote. No obligation.
Related Trust Topics
Reviewing Your Trust
Our trust review service — pricing, process, and what's included.
Administering Your Trust
Practical guidance for trustees on duties and compliance.
Trust-Based Estate Plans
New trusts designed to comply with the Trusts Act 2019 from day one.
Winding Up a Trust
When winding up is the right decision — and when it isn't.
Don't wait until there's a problem
A trust review now can prevent costly issues later. Let us check your trust is compliant and fit for purpose.
Request a Trust Review