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New Zealand · Year 4 · Equity & Trusts

Trusts Act Duties & Fiduciaries

Mandatory and default duties.

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  1. 1.Trusts Act 2019 — what are the mandatory duties (ss 23–27)?

    Know the terms of the trust; act in accordance with the terms; act honestly and in good faith; act for the benefit of the beneficiaries; exercise powers for a proper purpose.

    Trusts Act 2019, ss 23–27

  2. 2.Can mandatory duties be modified by the trust deed?

    No — they cannot be removed or modified; default duties (ss 28–38) can be modified or excluded by the deed.

    Trusts Act 2019, ss 22, 28–38

  3. 3.Examples of default duties?

    General duty of care, prudent investment, not to exercise powers for own benefit, to consider exercise of powers regularly, no conflict, not to profit, act for no reward, act unanimously.

    Trusts Act 2019, ss 29–38

  4. 4.Trusts Act 2019 s 51?

    Trustees must make basic trust information available to every beneficiary (or representative).

    Trusts Act 2019, s 51

  5. 5.Chirnside v Fay (2006) — held?

    Parties who had agreed to pursue a joint venture owed each other fiduciary duties even before a formal agreement.

    [2006] NZSC 68