What trustees do
Trustees look after land and assets (such as buildings, livestock, money) on behalf of a trust’s beneficial owners. Their job is to act in the interests of all beneficial owners and what they can and cannot do is set out in the trust order.
For example, trustees cannot decide to use income from the land for grants to kaumatua unless the trust order allows money to be used for “community purposes”.
General duties of a trustee
There are some general duties that apply to trustees of any type of trust. Trustees must:
- Know the trust order and what is in the trust.
- Work in line with the trust order at all times.
- Treat all beneficial owners fairly and impartially.
- Act with the same care as a prudent business person in managing trust affairs.
- Abide by all relevant laws. For example the sale of Māori land is closely regulated by the Māori Land Court under Te Ture Whenua Māori Act, as is the maximum length of leases on Māori land.
- Not personally benefit from being a trustee, but they are entitled to payment of reasonable expenses in doing their work as long as the trust order allows this.
- Not spend money unnecessarily or without proper authority. If they do, they can be held personally liable for any financial loss brought about by their mismanagement and owners can take a case to the Māori Land Court or High Court.
For Māori land, there are different types of trustees and arrangements for trustees. Read more about what each of the following do:
