Parliamentary plastic surgery is in store for the Trustee Act, to make trust law easier to access and understand.
On 1 August, Justice Minister Amy Adams introduced the Trusts Bill to Parliament. This will be the first significant change since the introduction of the Trustee Act 1956.
The old Act has been viewed as being narrow in scope, with trust administration being complicated and expensive.
Most trusts, like family trusts, business trusts and protective trusts, are set up with a trust deed or other document, like a will. These are known as express trusts.
In the new Bill, it expressly states that trustees will have to:
- Know the terms of the trust
- Act according to the terms of the trust
- Act honestly and in good faith
- Act for the benefit of the beneficiaries or the permitted purpose
- Exercise trustee powers for a proper purpose.