Trusts Act 2019
Sections and provisions with full text and the judgments that cite each one.
Section Sch5-22 — Limit on duration of trusts does not apply to joint trust
22 Limit on duration of trusts does not apply to joint trust
Section Sch5-59A — Transitional provision for maximum duration of future estates and interests
59A Transitional provision for maximum duration of future estates and interests (1) This section applies to an estate or interest in property that has been created, but that has not yet taken effect,…
Section 6 — Overview of this Act
6 Overview of this Act (1) This section is only a guide to the general scheme and effect of this Act. General provisions (2) Part 1 contains general provisions, including provisions that— (a) state…
Section 7 — Interpretation of Act
7 Interpretation of Act (1) This Act— (a) must be interpreted in a way that promotes its purpose and principles; and (b) is not subject to any rule that statutes in derogation of the common law…
Section 8 — Inherent jurisdiction of court not affected
8 Inherent jurisdiction of court not affected (1) The inherent jurisdiction of a court to supervise and intervene in the administration of a trust is not affected by this Act, except to the extent…
Section 9 — Definitions
9 Definitions In this Act, unless the context otherwise requires,— adult means a person aged 18 years or older beneficiary means a person who has received, or who will or may receive, a benefit under…
Section 10 — Transitional, savings, and related provisions
10 Transitional, savings, and related provisions The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.
Section 11 — Act binds the Crown
11 Act binds the Crown This Act binds the Crown.
Section 12 — Meaning of express trust
12 Meaning of express trust For the purposes of this Act, an express trust means a trust that— (a) has each of the characteristics set out in section 13 ; and (b) complies with section 14 ; and (c)…
Section 13 — Characteristics of express trust
13 Characteristics of express trust The characteristics of an express trust are as follows: (a) it is a fiduciary relationship in which a trustee holds or deals with trust property for the benefit of…
Section 14 — Sole trustee cannot be sole beneficiary
14 Sole trustee cannot be sole beneficiary A sole trustee of a trust must not be the sole beneficiary of the trust.
Section 15 — Creation of express trust
15 Creation of express trust (1) An express trust may be created— (a) by or under an enactment; or (b) by a person (the settlor ) who, clearly and with reasonable certainty (and subject to any…
Section 16 — Maximum duration of trust
16 Maximum duration of trust (1) The maximum duration of a trust is 125 years. (2) The terms of a trust may specify or imply a shorter duration. (3) If the terms of a trust do not specify or imply a…
Section 17 — Application of maximum duration rule to resettlements
17 Application of maximum duration rule to resettlements (1) 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…
Section 18 — Accumulation of income by trust
18 Accumulation of income by trust A trust may accumulate income to the extent that is consistent with its terms.
Section 19 — Distribution of trust property on expiry of trust
19 Distribution of trust property on expiry of trust (1) When a trust expires, all trust property must be distributed— (a) in accordance with the terms of the trust; or (b) if the terms of the trust…
Section 20 — Age of majority
20 Age of majority (1) For the purposes of an express trust, the age of majority is 18. (2) In the terms of a trust the expressions adult , child , full age , infant , infancy , minor , minority ,…
Section 21 — Guiding principle in performing duties
21 Guiding principle in performing duties In performing the mandatory duties set out in sections 23 to 27 and (except to the extent modified or excluded by the terms of the trust) the default duties…
Section 22 — Mandatory duties
22 Mandatory duties The duties set out in sections 23 to 27 are mandatory duties that— (a) must be performed by the trustee; and (b) may not be modified or excluded by the terms of the trust.
Section 23 — Duty to know terms of trust
23 Duty to know terms of trust A trustee must know the terms of the trust.
Section 24 — Duty to act in accordance with terms of trust
24 Duty to act in accordance with terms of trust A trustee must act in accordance with the terms of the trust.
Section 25 — Duty to act honestly and in good faith
25 Duty to act honestly and in good faith A trustee must act honestly and in good faith.
Section 26 — Duty to act for benefit of beneficiaries or to further permitted purpose of trust
26 Duty to act for benefit of beneficiaries or to further permitted purpose of trust A trustee must hold or deal with trust property and otherwise act— (a) for the benefit of the beneficiaries, in…
Section 27 — Duty to exercise powers for proper purpose
27 Duty to exercise powers for proper purpose A trustee must exercise the trustee’s powers for a proper purpose.
Section 28 — Default duties
28 Default duties The duties set out in sections 29 to 38 are default duties that must be performed by the trustee unless modified or excluded in accordance with section 5(4) and (5) .
Section 29 — General duty of care
29 General duty of care When administering a trust (other than when exercising a discretion to distribute trust property), a trustee must exercise the care and skill that is reasonable in the…
Section 30 — Duty to invest prudently
30 Duty to invest prudently When exercising any power to invest trust property, a trustee must exercise the care and skill that a prudent person of business would exercise in managing the affairs of…
Section 31 — Duty not to exercise power for own benefit
31 Duty not to exercise power for own benefit A trustee must not exercise a power of a trustee directly or indirectly for the trustee’s own benefit.
Section 32 — Duty to consider exercise of power
32 Duty to consider exercise of power A trustee must consider actively and regularly whether the trustee should be exercising 1 or more of the trustee’s powers.
Section 33 — Duty not to bind or commit trustees to future exercise of discretion
33 Duty not to bind or commit trustees to future exercise of discretion A trustee must not bind or commit trustees to a future exercise or non-exercise of a discretion.
Section 34 — Duty to avoid conflict of interest
34 Duty to avoid conflict of interest A trustee must avoid a conflict between the interests of the trustee and the interests of the beneficiaries.
Section 35 — Duty of impartiality
35 Duty of impartiality (1) A trustee must act impartially in relation to the beneficiaries, and must not be unfairly partial to one beneficiary or group of beneficiaries to the detriment of the…
Section 36 — Duty not to profit
36 Duty not to profit A trustee must not make a profit from the trusteeship of a trust.
Section 37 — Duty to act for no reward
37 Duty to act for no reward A trustee must not take any reward for acting as a trustee, but this does not affect the right of a trustee to be reimbursed for the trustee’s legitimate expenses and…
Section 38 — Duty to act unanimously
38 Duty to act unanimously If there is more than 1 trustee, the trustees must act unanimously.
Section 39 — Adviser must alert settlor to modification or exclusion of default duty
39 Adviser must alert settlor to modification or exclusion of default duty (1) This section applies to a person who— (a) is paid to— (i) advise on the creation of a trust; or (ii) prepare the terms…
Section 40 — Restriction on trustee exemption clauses
40 Restriction on trustee exemption clauses The terms of a trust must not limit or exclude a trustee’s liability for any breach of trust arising from the trustee’s dishonesty, wilful misconduct, or…
Section 41 — Restriction on trustee indemnity clauses
41 Restriction on trustee indemnity clauses The terms of a trust must not give a trustee any indemnity against the trust property for liability for any breach of trust arising from the trustee’s…
Section 42 — Invalidity of exemption clause or indemnity clause
42 Invalidity of exemption clause or indemnity clause A clause in the terms of a trust is invalid to the extent that it purports to have the effect prohibited by section 40 or 41 .
Section 43 — Adviser must alert settlor to liability exclusion or indemnity clause
43 Adviser must alert settlor to liability exclusion or indemnity clause (1) This section applies if— (a) a person (the adviser ) is paid to— (i) advise on the creation of a trust; or (ii) prepare…
Section 44 — Court consideration of gross negligence
44 Court consideration of gross negligence (1) This section applies when a court is deciding whether a trustee has been grossly negligent for the purposes of section 40 , 41 , 75 , or 82 . (2) The…
Section 45 — Trustee must keep core documents
45 Trustee must keep core documents Each trustee of a trust must keep, so far as is reasonable, the following documents relating to the trust: (a) the trust deed and any other document that contains…
Section 46 — Keeping documents where there is more than 1 trustee
46 Keeping documents where there is more than 1 trustee If there is more than 1 trustee of a trust, each trustee must comply with the obligation in section 45 by— (a) holding the documents specified…
Section 47 — Documents must be kept for duration of trusteeship
47 Documents must be kept for duration of trusteeship A trustee must keep, so far as is reasonable, the documents for the duration of the trustee’s trusteeship.
Section 48 — Trustee must pass on documents
48 Trustee must pass on documents At the time that the trusteeship of a trustee ends, if the trust continues, the trustee must give at least 1 replacement trustee or continuing trustee the documents…
Section 49 — Definitions for purposes of sections 50 to 55
49 Definitions for purposes of sections 50 to 55 In this section and in sections 50 to 55 ,— representative means the parent, guardian, attorney, or property manager of a beneficiary who lacks…
Section 50 — Purpose and application of sections 51 to 55
50 Purpose and application of sections 51 to 55 (1) The purpose of sections 51 to 55 is to ensure that beneficiaries have sufficient information to enable the terms of the trust and the trustees’…
Section 51 — Presumption that trustee must notify basic trust information
51 Presumption that trustee must notify basic trust information (1) There is a presumption that a trustee must make available to every beneficiary or representative of a beneficiary the basic trust…
Section 52 — Presumption that trustee must give information on request
52 Presumption that trustee must give information on request (1) There is a presumption that a trustee must within a reasonable period of time give a beneficiary or the representative of a…
Section 53 — Procedure for deciding whether presumption applies
53 Procedure for deciding whether presumption applies The factors that the trustee must consider (for the purposes of sections 51(2) (a) and 52(2) (a) ) are the following: (a) the nature of the…