• Facebook
  • Twitter
  • Youtube
  • LinkedIn
Parry Field Lawyers
  • Home
  • About
    • News
    • Terms of Engagement
  • Our People
  • Services
    • Property
      • Residential
      • Construction
      • Subdivisions
      • Commercial
      • Leasing
    • Advisory
      • Employment
      • Sale & Purchases
      • Financing
      • Governance
      • Technology/IT
      • Capital Raising
    • Disputes
      • Employment
      • Court, Tribunals and Arbitrations
      • Estates & Wills
      • Divorce & Separation
      • Insurance
      • Family
      • Company & Shareholding
      • Debt Collection
      • Construction
    • Trusts & Asset Planning
      • Wills & Enduring Powers of Attorney
      • Estates
      • Succession Planning
    • Charities/For Purpose Organisations
      • Incorporated Societies: Information Hub
      • Charities: Information Hub
      • Faith Based Groups: Information Hub
      • Impact Investing: Information Hub
      • Hybrid Solutions: Charity/Business
      • Not for Profits
      • Churches
      • Sports Groups
      • Social Enterprises/Impact Companies
      • Community Groups
    • Immigration
      • Work Visas
      • Family Visas
      • Skilled Migrants
      • Business and Investment Visas
      • Potentially Prejudicial Information
      • Employer Assistance
      • Overseas Investment
  • Resources
    • Guides
      • Capital Raising Guide
      • Resources for the Incorporated Societies Act 2022
      • Doing Business In New Zealand
      • Start Ups Legal Toolkit
      • Buying & Selling Property
      • Charities In New Zealand
      • Social Enterprises in New Zealand Handbook
      • Family Trusts
      • Death & Estates
      • Churches Handbook
      • COVID-19 Legal Handbook
    • Articles
      • Heat of the moment resignations – do employees need to be given a chance to cool off?
      • The new Incorporated Societies Act 2022: When will the new Act affect my Society?
      • Racial Harassment in the Workplace
      • Built up annual leave – does an employee have to use it?
      • Resources for the Incorporated Societies Act 2022
      • When can a Trustee delegate their powers?
      • Buying your first home: Key issues (a practical guide from a first home buyer)
      • The new Incorporated Societies Act 2022: What it means for your Incorporated Society
      • The Addington Farm: A case study in setting up a Charity
      • The Bright-Line Test
      • Funds that advance charity: How do they work? 
      • What is a LIM?
      • Charity Founders’ Ongoing Relationship With The Charity They Start: Key points to know
    • Templates
      • Terms and Conditions
      • Terms and Conditions Including Software
      • Non-Disclosure Agreement – One Way
      • Non-Disclosure Agreement – Two Way
      • Independent Contractors Agreement
      • Shareholders’ Resolutions – Written resolution
      • Share Transfer
      • Incorporation – First Shareholder Resolutions
      • Incorporation – First Directors’ Resolutions
    • Videos
      • COVID-19 and Commercial Leases
      • Force Majeure” clauses in Contracts and COVID-19
      • Property sale and purchases and COVID-19
      • Seeds Podcast
  • Careers
  • Contact
  • Pay Online
  • Search
  • Menu Menu

When can a Trustee delegate their powers?

Trusts & Asset Planning

Introduction

We often get asked by trustees if they can just delegate their powers to someone else who will step into their shoes.  The basic principle is no, because the role of being a trustee is personal to an individual.  This means that generally a trustee cannot delegate their duties or powers to others. There are very few exceptions to this well-established rule, and we want to talk about one of the key ones in this article.  

Permitted delegation under section 70 of the Trusts Act 2019

Under section 70 of the Trusts Act 2019, a trustee may delegate any or all of their powers and functions under the trust to a qualified person by way of power of attorney.  This section applies to both charitable trusts and private trusts.

However, under section 70(2) this power to delegate can only be exercised in the circumstances are necessary because the trustee is:

  1. absent from New Zealand; or
  2. temporarily unable to be contacted; or
  3. temporarily physically incapacitated; or
  4. temporarily does not have capacity to perform the functions of a trustee.

The period of delegation begins when the section 70(2) circumstance occurs, and continues for the shorter of:

  • the duration of the section 70(2) circumstances; and
  • 12 months.

If the delegation has been in place for 12 months and the section 70(2) circumstances continue, the delegation may be extended by the delegating trustee (or the trustee’s delegate where subsection 70(2)(d) applies) for the shorter of:

  • the remaining duration of the section 70(2) circumstances; and
  • a further 12 months.

In this situation the person who is delegated the trustee’s powers can exercise all of their duties and powers, including the power to resign.

Delegation by way of power of attorney must be executed as a deed. A trustee may delegate their powers to a sole co-trustee only where that sole co-trustee is a body corporate that is authorised under the Trusts Act 2019 to act as executor or administrator of a deceased person’s estate and includes a trustee corporation. This means a trustee could not delegate their powers to a sole co-trustee who is a natural person.

These limits reflect the fact that trustees cannot delegate their duties or powers, except where absolutely necessary in the circumstances. A power of attorney cannot be used to delegate or hand over the duties of the trustee to another, but may only be used in very particular circumstances and for a limited period.

Summary

Trustees cannot delegate their duties or powers, except where absolutely necessary in the circumstances as set out in section 70. We have helped many trusts over the years and would be happy to discuss your situation with you. You can contact us any time by email or phone.

This article is not a substitute for legal advice and you should consult your lawyer about your specific situation. Please feel free to contact Steven Moe – stevenmoe@parryfield.com, Aislinn Molloy  – aislinnmolloy@parryfield.com or Michael Belay – michaelbelay@parryfield.com at Parry Field Lawyers.

Further helpful resources

Charities and the New Trusts Act 2019: Any Impact?

Update on Trusts 2020

 

 

 

https://www.parryfield.com/wp-content/uploads/2020/04/A654105-scaled.jpg 1706 2560 Kylie Shipley https://www.parryfield.com/wp-content/uploads/2019/07/Parry-Field-Lawyers-Logo.png Kylie Shipley2022-04-11 19:33:342022-04-12 10:01:35When can a Trustee delegate their powers?

Related Lawyers

View Profile
Aislinn Molloy
Email Aislinn
+6433488480
View Profile
Michael Belay
+6433488480
View Profile

Christchurch CBD

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
Level 1, 60 Cashel Street
Christchurch 8013, New Zealand

POSTAL ADDRESS:
PO Box 744
Christchurch, 8140, New Zealand

Christchurch

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
1 Rimu Street, Riccarton,
Christchurch 8041, New Zealand

POSTAL ADDRESS:
PO Box 8020, Riccarton,
Christchurch, 8440, New Zealand

Rolleston

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
Level 1, 80 Rolleston Drive,
Rolleston, 7614, New Zealand

POSTAL ADDRESS:
PO Box 8020, Riccarton,
Christchurch, 8440, New Zealand

Hokitika

PHONE: +64 3 755 8673
FAX: +64 3 755 8073

PHYSICAL ADDRESS:
26 Weld Street,
Hokitika 7810, New Zealand

POSTAL ADDRESS:
PO Box 44,
Hokitika 7842, New Zealand

Make an enquiry

Parry Field Charitable Foundation

Parry Field charitable members of NZ LAw, Global Cross Legal and SCLA

70 Years of Excellence logo

© Copyright – Parry Field Lawyers     |     Privacy Policy

The new Incorporated Societies Act 2022: What it means for your Incorporated...The new Incorporated Societies Act 2022 and your constitution: What has changed...
Scroll to top