Contents

Chapter 4
Characteristics and creation of a trust

Introduction

4.1We recommend including sections in the new Trusts Act that outline what a trust is and how a trust is created to provide general guidance on the nature of the trust relationship. The intention of such provisions would not be to override the traditional understanding of a trust based on case law, but to summarise in one place the key features of a trust. It is important that people settling trusts and interacting with trusts understand the trust relationship. The introduction of definition and creation provisions are discussed more extensively in the Preferred Approach Paper154 and the Introductory Issues Paper.155
154Law Commission Review of the Law of Trusts – Preferred Approach (NZLC IP31, 2012) at ch 2.
155Law Commission Review of Trust Law in New Zealand: Introductory Issues Paper (NZLC IP19, 2010) at ch 3.