--- title: What you Need to Know About the Trusts Act 2019 description: Learn about key changes in the Trusts Act 2019, including trustee duties, liability, disclosure obligations, and trust duration. Discover how these updates impact trust management. image: https://moranlaw.co/hubfs/AI-Generated%20Media/Images/The%20background%20is%20blue%20there%20is%20a%20navy%20blue%20silhouetted%20person%20reading%20a%20very%20important%20red%20document-2.png --- [![dark-logo](https://moranlaw.co/hubfs/dark-logo.png) ![top-logo](https://moranlaw.co/hubfs/top-logo.png) ![dark-logo](https://moranlaw.co/hubfs/dark-logo.png) ![top-logo](https://moranlaw.co/hubfs/top-logo.png) ![dark-logo](https://moranlaw.co/hubfs/dark-logo.png)](https://moranlaw.co) - Our Services - [Intellectual Property](https://moranlaw.co/protecting-intellectual-property) - [Commercial and Corporate](https://moranlaw.co/commercial-and-corporate) - [For Families](https://moranlaw.co/for-families) - [Elevated Trust Management](https://moranlaw.co/elevated-trust-management) - [Not-For-Profit](https://moranlaw.co/not-for-profits) - [Privacy, Cyber, and Data Security](https://moranlaw.co/privacy-cyber-and-data-security) - [Our Team](https://moranlaw.co/moranlaw-team) - [About Us](https://moranlaw.co/about) - [Careers](https://moranlaw.co/careers) - [Blog](https://moranlaw.co/blog) [Contact us](https://moranlaw.co/contact) - Our Services - [Intellectual Property](https://moranlaw.co/protecting-intellectual-property) - [Commercial and Corporate](https://moranlaw.co/commercial-and-corporate) - [For Families](https://moranlaw.co/for-families) - [Elevated Trust Management](https://moranlaw.co/elevated-trust-management) - [Not-For-Profit](https://moranlaw.co/not-for-profits) - [Privacy, Cyber, and Data Security](https://moranlaw.co/privacy-cyber-and-data-security) - [Our Team](https://moranlaw.co/moranlaw-team) - [About Us](https://moranlaw.co/about) - [Careers](https://moranlaw.co/careers) - [Blog](https://moranlaw.co/blog) [Contact us](https://moranlaw.co/contact) - Our Services - [Intellectual Property](https://moranlaw.co/protecting-intellectual-property) - [Commercial and Corporate](https://moranlaw.co/commercial-and-corporate) - [For Families](https://moranlaw.co/for-families) - [Elevated Trust Management](https://moranlaw.co/elevated-trust-management) - [Not-For-Profit](https://moranlaw.co/not-for-profits) - [Privacy, Cyber, and Data Security](https://moranlaw.co/privacy-cyber-and-data-security) - [Our Team](https://moranlaw.co/moranlaw-team) - [About Us](https://moranlaw.co/about) - [Careers](https://moranlaw.co/careers) - [Blog](https://moranlaw.co/blog) ##### WELLINGTON, NEW ZEALAND Level 1, 40 Lady Elizabeth Lane Wellington 6011 Postal: PO Box 10538 Wellington 6140 Phone: +64 4 830 2430 Email: [team@moranlaw.co](mailto:team@moranlaw.co) ##### AUCKLAND, NEW ZEALAND Suite 502, Level 5, Achilles House 8 Commerce Street Auckland 1010 Phone: +64 9 951 1468 ##### SYDNEY, AUSTRALIA Level 26, 44 Market Street  Sydney, NSW, 2000 Phone: +61 2 9091 4258 ![](https://moranlaw.co/hs-fs/hubfs/AI-Generated%20Media/Images/The%20background%20is%20blue%20there%20is%20a%20navy%20blue%20silhouetted%20person%20reading%20a%20very%20important%20red%20document-2.png?width=1280&name=The%20background%20is%20blue%20there%20is%20a%20navy%20blue%20silhouetted%20person%20reading%20a%20very%20important%20red%20document-2.png) # What you Need to Know About the Trusts Act 2019 ![MoranLaw Team](https://moranlaw.co/hs-fs/hubfs/ML%20thumbnail.jpg?width=80&name=ML%20thumbnail.jpg) [MoranLaw Team](https://moranlaw.co/blog/author/moranlaw-team) September 14, 2025, 10:00:00 AM NZST The Trusts Act 2019 (the Act) came into force on 30 January 2021, replacing the Trustee Act 1956. Its aim is to enhance accessibility to trust law for both trustees and beneficiaries. This document provides a summary of the main changes to the existing trust legislation. Trustee Duties While the law has long placed duties on trustees, the new Act defines trustees’ duties in modern clear language. The Act split the duties into Mandatory and Default. Mandatory duties are duties which cannot be altered by the trust’s terms. They set out the fundamental obligations of trustees, being to: - know the terms of the trust and follow them; and - act honestly and for the benefit of the beneficiaries and according to a proper purpose. The default duties can be adjusted or excluded by the provisions of the trust deed. Sections 29-38 of the Act outline these default trustee duties, which include: - General duty of care (section 29) - Duty to invest prudently (section 30) - Duty not to exercise power for own benefit (section 31) - Duty to consider exercise of power (section 32) - Duty not to bind or commit trustees to future exercise of discretion (section 33) - Duty to avoid conflict of interest (section 34) - Duty of impartiality (section 35) - Duty not to profit (section 36) - Duty to act for no reward (section 37) - Duty to act unanimously (section 38) - We can assist in modifying or excluding some or all of these default duties to suit the purposes and administration of your trust. **Trustee Liability** The Act introduces new rules regarding trustees’ ability to exclude or limit their liability, as well as their rights to be indemnified from trust property. It explicitly states that a trustee cannot limit their liability or seek indemnification for any breach of trust or loss resulting from their own wilful misconduct, gross negligence, or dishonesty. These changes also impact how professional trustees manage their responsibilities, as most professional trustees require a signed limitation of liability and indemnification when taking on the role of independent trustee. Delegation The Act modifies the rules around trustees’ ability to delegate their powers and functions, expanding the situations in which delegation is permitted while limiting the duration for which such delegation remains effective. If your trust has previously relied on delegation, it may be useful to discuss whether changing the trustees would be a more suitable option. Disclosure obligations The Act establishes a positive obligation for trustees to inform all beneficiaries that they are a beneficiary of a trust, who the current trustees are and that they have the right to request information about the trust. This represents a significant change that many settlors may not have anticipated when creating their trusts. The Act outlines the factors trustees must take into account when determining whether to notify someone of their status as a beneficiary of a trust and whether to provide any requested information about the trust. Although the factors trustees must consider largely mirror existing law, trustees need to pay close attention to their disclosure obligations. Trustees should carefully manage how information is shared, as beneficiaries being aware of the trust could influence family dynamics and lead to increased requests for information and scrutiny of trustee actions.   Retaining Core Documents The Act requires trustees (or at least one of them) to keep copies of the core documents of the trust (which are readily available to all trustees). Examples of such documents include the trust deed and variations, details of trust assets, liabilities and overall financial position, contracts entered into by the trust (including agreements for sale and purchase, bank loan documents), records of trustee decisions and a settlor’s memorandum of wishes (if any). These core trust documents must be retained for the lifetime of the trust, necessitating that financial statements be kept longer than current legal requirements. This obligation is likely to change how professionals manage and store trust documentation for their clients. Through the MoranLaw Elevated Trust Management program we offer the service of maintaining these core documents on behalf of the trust. Trust Duration The Act extends the maximum duration of a trust from 80 years to 125 years. Dispute Resolution The Act allows a trust deed to specify that trust disputes can be resolved through alternative dispute resolution (ADR). This process can address conflicts between trustees, between trustees and one or more beneficiaries, or between trustees and external third parties. As part of engaging in ADR, trustees may also provide binding undertakings regarding their future actions as trustees when settling the dispute. Do you have any concerns about your trust in relation to any of the above?[Get in touch](https://moranlaw.co/moranlaw-team) with the experience Elevated Trusts team at MoranLaw today. Share on: [Share on Facebook](https://www.facebook.com/sharer.php?u=https://moranlaw.co/blog/what-you-need-to-know-about-the-trusts-act-2019) [Share on LinkedIn](https://www.linkedin.com/shareArticle?mini=true&url=https://moranlaw.co/blog/what-you-need-to-know-about-the-trusts-act-2019) Tags: [Trusts](https://moranlaw.co/blog/tag/trusts) You may also like ![](https://moranlaw.co/hs-fs/hubfs/AI-Generated%20Media/Images/isometric%20A%20pale%20blue%20background%20On%20one%20side%20three%20navy%20blue%20silhouetted%20figures%20stand%20The%20central%20figure%20is%20holding%20a%20document%20titled%20Trust%20Deed%20On%20t.png?width=630&name=isometric%20A%20pale%20blue%20background%20On%20one%20side%20three%20navy%20blue%20silhouetted%20figures%20stand%20The%20central%20figure%20is%20holding%20a%20document%20titled%20Trust%20Deed%20On%20t.png) October 23, 2025, 3:35:08 PM NZDT Understanding Beneficiary Rights: Requesting Trust Information in New Zealand ![](https://moranlaw.co/hs-fs/hubfs/AI-Generated%20Media/Images/A%20pale%20blue%20background%20Against%20the%20background%20is%20a%20checklist%20titled%20Trustees%20Checklist%20The%20numbered%20checklist%20has%20no%20written%20word%20only%20squiggly%20lines%20which%20look%20like%20writing%20next%20to%20each%20numbered%20task%20there%20is%20a%20check%20box%20Each%20check%20box%20has%20a%20red%20tic-1.png?width=630&name=A%20pale%20blue%20background%20Against%20the%20background%20is%20a%20checklist%20titled%20Trustees%20Checklist%20The%20numbered%20checklist%20has%20no%20written%20word%20only%20squiggly%20lines%20which%20look%20like%20writing%20next%20to%20each%20numbered%20task%20there%20is%20a%20check%20box%20Each%20check%20box%20has%20a%20red%20tic-1.png) September 13, 2025, 10:00:00 AM NZST What Should Trustees be Doing? 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