Understanding the Trusts Act 2019: What Trustees and Beneficiaries Need to Know

The Trusts Act 2019, which came into effect in January 2021, introduced important changes affecting trustees and beneficiaries across New Zealand. If you’re a trustee or beneficiary in Pukekohe, South Auckland, or Waiheke, understanding these changes is crucial to ensure your trust complies with the law.

Key Duties Imposed on Trustees

The Act clearly defines mandatory duties that trustees must follow, some of which cannot be modified or excluded by a trust deed. These include:

• Acting honestly and in good faith

• Acting for the benefit of all beneficiaries

• Exercising trustee powers for proper purposes only

Trustees are now required to maintain and disclose basic trust information to beneficiaries when requested, including:

• Confirming a person’s status as a beneficiary

• Providing contact details of trustees

• Sharing basic financial information

• Keeping records as specified by the Act

• 
  

What Beneficiaries Should Expect

Since 2021, trustees must proactively inform beneficiaries of their status and provide regular updates about the trust, even without requests. Beneficiaries have the right to:

• Access the trust deed

• Know the current trustees

• Review essential financial information

• 
  

What You Need to Do Now

Arnet Law has welcomed Natalie Picton as our new Trust Administrator to help our clients review and update their trusts in line with the new requirements. Whether you are already a client or need advice about the Trusts Act 2019, contact us to schedule your trust review.

Ignoring these obligations may lead to serious consequences, including:

• Beneficiaries raising formal complaints

• Court applications to remove trustees who fail to comply

• 
  

How Arnet Law Can Help with the Trusts Act 2019

If you are a trustee or beneficiary in Pukekohe, South Auckland, Waiheke, or surrounding areas, our experienced legal team can provide straightforward advice and assistance to ensure your trust remains compliant with the Trusts Act 2019. Contact Arnet Law today to discuss your options and get expert guidance.