The Law Commission released the sixth issues paper on the Review of the Law of Trusts in November 2012. The paper is available below in PDF form, or you can view the online version. There is also a summary version available below, or view the summary online. This Preferred Approach Paper outlines proposals across the range of topics covered in the five preceding issues papers.
This paper is divided into four parts. Part 1 addresses core trust concepts, including the context and features of trust use in New Zealand, core principles of trust law and the duties of trustees.
Part 2 focuses on trustees. It includes chapters on general powers of trustees, investment powers, the appointment and removal of trustees, and custodian and advisory trustees. It also contains a chapter looking at issues that arise in the context of corporate trustees and insolvent trusts, although some of these proposals have application to all trusts and trustees.
The powers and jurisdiction of the courts is discussed in Part 3, which includes the revocation and variation of trusts, the power to review the exercise of a trustee’s discretion, and a variety of miscellaneous court powers. Part 3 also looks at the type of trusts jurisdiction that different courts should have and methods for resolving disputes outside of the courts.
Part 4 contains chapters considering trust issues of general application, including the rule against perpetuities and the duration of trusts, and regulation, such as the registration of trusts and requirements for trust service providers. The final two chapters of Part 4 look at the interaction of trusts with other policy areas, and in particular trusts and relationship property.
Submissions for this paper closed on Friday 22 February 2013.