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How do you remove a trustee who refuses to co-operate?

Trustees hold legal title (ownership) of trust assets in their names. A common problem in family trusts is where a trustee has been removed and refuses to co-operate with the formal transfer of the trust assets to the new trustees.

Historically, the only way to deal with this was through a Court Order.

Section 116 – 118 of the Trusts Act 2019 has solved this problem.

When a trustee is removed, the trust property is automatically put in the hands of the remaining trustees. If the removed trustee refuses to sign the necessary documents, the other trustees can sign them and they will be accepted by the Land Transfer office.

Sections 116 – 118 are subject to a right of the remaining trustees to challenge the trustee's removal.

For further information contact us or call (03) 477 8080

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