Trustees’ indemnities – protections
As we systematically provide commentary for every section of the Trusts Act 2019, Professor Emerita Nicola Peart has focussed on the last three sections of pt 4, subpt 2 of the Trusts Act, relating to trustees’ indemnities.
s 89 Protection of trustee in handing over personal property to life tenant: a trustee is not liable for any loss or destruction of personal property delivered to a person who has been left a life interest or other limited interest in the property by will. Before delivery to the life tenant, or in the case of a child the child’s parent or guardian, the trustee must prepare an inventory of the property, which both the trustee and the recipient of the property must sign, and the trustee must give a copy to the life tenant (or parent or guardian) and keep a copy. The signed inventory is a security interest for purposes of the Personal Property Securities Act 1999 and a financing statement may be registered.
s 90 Protection of trustee in handing over personal property to child: A trustee may deliver to a child, or the child’s parent or guardian, any tangible personal property that is absolutely vested in the child and the receipt of the child or parent or guardian is a good discharge to the trustee of the property.
s 91 Protection relating to notice when person trustee of more than 1 trust: If a trustee acts for more than one trust, the trustee is not taken to have notice of a matter in relation to a trust only because notice of the matter is, or was, given to the trustee when acting for another trust, unless the trustee is acting in bad faith.
You can read the new commentary available for each of these sections online now.