Trust Terminology

ADVISORY TRUSTEE

A Trustee appointed in an advisory capacity for specific expertise, more often for a set period. The Advisory Trustee can usually attend all meetings and join in on decisions, but will not carry the legal duties and responsibilities of a Trustee.

BOARD OF TRUSTEES

Usually a minimum of 4 Trustees, though this can be as few as 2 Trustees; With an elected Chairman.

CHAIRMAN

The elected presiding Trustee, often with a casting vote.

CHARITABLE TRUST

A trust as defined within the Charitable Trusts Act 1957.

EMERITUS TRUSTEE

An honorary position for considerable contribution.

EXECUTIVE TRUSTEE

A Trustee with an executive position (eg. Chief Executive, Executive Officer, School Principal).

INDEPENDENT TRUSTEE

An Independent Trustee will not be a Settlor or a Beneficiary of the trust, also the person/entity will not be affiliated with, associated with, related to, or subject to the control or influence of any of the parties that hold a beneficial interest in the trust. In more recent times the Independent Trustee is seen as giving validity to Private or Family Trusts, and is often a requirement within a Deed for Superannuation and other Managed Fund Trusts.

LAY TRUSTEE

A Trustee without trust-related credential or affiliation.

NOMINEE TRUSTEE

A Trustee, usually a corporate body, appointed as a requirement of group schemes, unit trusts, etc.

PASSIVE TRUSTEE

A Trustee with little involvement with the running of the trust except where circumstances demand. This position is one of some risk and not to be recommended.

PHILANTHOPIC TRUST

A trust formed by a donor person or body, with the principal activity of grant making.

PRINCIPAL / RESPONSIBLE TRUSTEE

A presiding Trustee usually where there is no Chairman; A Trustee authorised to make limited decisions and agreements on behalf of the trust.

PROFESSIONAL TRUSTEE

A Trustee who has been admitted to the NZ Trustees Association's Register of Professional Trustees.

SENIOR TRUSTEE

A Trustee with a minimum of 7 years experience.

TRUST ADMINISTRATOR

A person involved in the administration of one or more trusts.

TRUST COMPANY or TRUSTEE COMPANY

A company with a principal activity of administering trusts, that may also offer financial services eg Fund Management; also, a company with the principal activity of acting as Trustee, in either a sole or co-trusteeships capacity but which may or may not be empowered under the Trustee Companies Act.

TRUST PRACTITIONER

A professional specialising in trust formation and compliance.

TRUSTEE COMPANY / TRUSTEE CORPORATION / STATUTORY TRUSTEE

A company or corporate body empowered by it's own Act of Parliament or under the Trustee Companies Act; Able to act as Administrator, or Executor of a deceased estate.