When someone who is a trustee of a family trust dies, the legal ownership of any trust property — such as land or a house — needs to be updated.
This post explains what steps you need to take about (a) recording the trustee’s death and, perhaps, appointing a replacement trustee, and (b) updating the land title.
This post applies to New Zealand ‘family trusts’ established by trust deeds. It does not apply to ‘whānau trusts’ established by an order of the Māori Land Court.
Step 1: Decide Whether a Replacement Trustee Is Needed
Before you update the land title, you should check whether a new trustee must be appointed.
Look at the trust deed and check:
- How many trustees the trust is required to have
- Who has the power to appoint new trustees
- What method, if any, is specified for the appointment of new trustees
If the trust deed requires a minimum number of trustees, and the number has dropped below that, then a replacement is required.
But if enough trustees remain (e.g. the trust deed says there must be two trustees and two are still alive), then no replacement may be necessary.
If no replacement trustee is appointed, the land edealing is simpler because it needs only a ‘transmission by survivorship’. If a replacement trustee is being appointed, there will need to be a ‘transfer’ in addition to the ‘transmission by survivorship’.
Even if no new trustee is being appointed, the remaining trustee(s) should still pass a resolution confirming:
- The death of the former trustee
- That no appointment is required under the trust deed or the Trusts Act
- That the remaining trustee(s) continue to act
- That a transmission by survivorship is to be registered, to update the land title
What Kind of Resolution Is Needed?
If a replacement trustee is appointed: pass a resolution confirming (a) the death; (b) the appointment; (c) the required update to the land title showing the surviving and replacement trustees.
If no replacement is needed: pass a resolution confirming (a) the death; (b) decision not to appoint a replacement; (c) the required update to the land title showing the surviving trustees.
Step 2: Appoint the Replacement Trustee (If Required)
If a new trustee does need to be appointed, the trust deed will usually say who has that power.
It may be:
- The surviving trustee(s)
- The executor of the deceased trustee’s will
- A named appointer or independent person
The appointment should be recorded formally in writing — usually in a resolution, unless the trust deed specifies something else.
Step 3: Prepare a Landonline E-Dealing
Your lawyer (or a conveyancer) will prepare an e-dealing in Landonline — the system used for managing land titles in New Zealand.
This will:
- Remove the deceased trustee’s name from the title – by a ‘transmission by survivorship’
- Add the new trustee’s name, if applicable – by a transfer
Even if you are not appointing a new trustee, the Landonline title must still be updated to reflect the current trustee lineup.
Step 4: Provide Supporting Documents
To complete the e-dealing, you will need to provide:
- A death certificate for the deceased trustee
- A trustee resolution or appointment document
- A statutory declaration by the surviving trustee/s – with the death certificate and trustee resolution/appointment document attached
- An ‘Authority and Instruction’ form signed by the surviving trustee/s and (if any) replacement trustee/s
- If a replacement trustee is being appointed, ‘tax-statement’ information from the surviving trustee/s and the replacement trustee/s, to support the required ‘transfer’ from the surviving trustee/s to themselves and the replacement trustee/s (it’s not as bad as it sounds! – it means information about (a) whether trustees are living in the property, (b) whether they or their family are New Zealand citizens, permanent residents, or other visa holders, and (c) IRD numbers)
- If there are no surviving trustees, equivalent paperwork from the executor/administrator of the estate of the last surviving trustee, supported by probate or letters of administration
Your lawyer will need to check the trust deed and other paperwork to ensure everything complies with the Trusts Act and Land Transfer Act.
Final Result: Land Title Is Up to Date
Once the e-dealing is registered, the land title will show the updated trustee(s). This ensures the trust can continue to manage the property.
Keeping the title up to date also avoids future issues when:
- Selling or mortgaging the property
- Winding up the trust
- Transferring the property to beneficiaries
Appendix: Default Rules Under the Trusts Act 2019
If the trust deed is silent about appointing new trustees, then the Trusts Act 2019 provides fallback rules:
- Two or more trustees remain → They may appoint a replacement if desired (section 92(2)(c))
- Only one trustee remains → They may continue as sole trustee only if the trust deed permits this and (section 14) the sole trustee is not the sole beneficiary of the trust; otherwise they must appoint a replacement trustee (section 113(1));
- Even if the trust deed requires 2 or more trustees, a ‘statutory trustee’ (such as Public Trust or Perpetual Guardian) may be appointed and may lawfully act as sole trustee (section 97(1)), unless the terms of the trust forbid the appointment of that trustee (section 97(2)).
- No trustees remain → The executor of the last surviving trustee may appoint a new trustee (section 92(2)(c)(iii)), or, if this is difficult or impracticable, someone (e.g. a beneficiary) can apply to the High Court (section 114).
Whoever appoints the new trustee must exercise that power honestly, in good faith, and for a proper purpose (section 94).
If a sole trustee or the last surviving trustee dies, the ‘personal representative’ (executor or administrator) may, for a reasonable period of time, do what that trustee could have done (section 102(2)), pending the appointment of a new trustee.
If it is difficult or impracticable to appoint a new trustee, the High Court may make an order appointing a new trustee (section 114(1). If a sole trustee dies, the trustee may be replaced with more than 1 replacement trustee unless the trust deed says something different (section 115),
The Act does not set a minimum number of trustees — a trust can legally continue with one trustee unless the trust deed says otherwise.
⚠️ However, even if the trust deed allows a sole trustee to act alone, the trustee must be careful not to exercise any power for their own benefit unless the trust deed expressly authorises them to do so. If there is a sole trustee, they cannot be the sole beneficiary of the trust.
Need Help With a Change of Trustee or Land Title?
Kiwilaw can help with the legal paperwork required when a trustee dies — especially where trust-owned land is involved.
If you’re dealing with a deceased trustee and need help updating the land title, passing a resolution, or preparing the correct documents for Landonline, do get in touch!
Cheryl Simes – 27 July 2025