A. The legal definition of a trust is an equitable obligation binding a person, the trustee, to deal with property over which he or she has control (the trust property) for the benefit of certain persons (the beneficiaries, any one of whom may enforce the obligation). The trustee may also be a beneficiary.

In Maori Land Court terms a trust is a management structure, set up by owners to administer and look after land or shares in land.

A trustee is someone who has been given the legal responsibility of looking after someone else's assets and liabilities for that other person's benefit. A trust is the obligation that the trustee has.

A. Under Te Ture Whenua Maori Act 1993, there are five types of trusts.

Ahu whenua trust - This is the most common Maori land trust. The purpose of an ahu whenua trust is to promote the use and administration of the land in the interest of the owners. These trusts are often used for commercial purposes.

Whenua topu trust - This is an iwi or hapu based trust. It is designed to facilitate the use and administration of the land in the interest of the iwi or hapu. This type of trust is used for receiving Crown land as part of any settlement.

Ahu whenua and whenua topu trusts are land management trusts and involve whole blocks of land.

Whanau trust - This is a whanau oriented trust. It allows the whanau to bring together their Maori land interests for the benefit of the whanau and their descendants.

Putea trust - A putea trust allows the owners of small and uneconomical interests to pool their interests together.

Whanau and putea trusts are share management trusts and relate primarily to specified shares in land.

Kai tiaki trust - A kai tiaki trust relates solely to an individual who is a minor or has a disability and is unable to manage their affairs. This trust can include all of an individual's assets.

A. Landowners can set up a trust by nominating trustees to manage their property interests and applying to the Maori Land Court. (Application forms can be obtained from Maori Land Court offices.) Except for kai tiaki trusts, the process is the same to set up each type of trust.

The owners first need to hold a meeting at which they:

• agree to set up the trust
• agree which blocks of land should be included in the trust
• agree to the terms of the draft trust order which sets out the trustees' powers, rights and obligations
• nominate trustees
• take accurate minutes.

All landowners should be given sufficient notice about the meeting and the opportunity to discuss the proposal.

After the meeting, the owners need to apply to the Maori Land Court to set up the trust. They must provide the court with:

• a copy of the minutes of their meeting, which should include all resolutions agreed to
• a copy of the draft trust order, which has been approved by the owners
• the written consents of the nominated trustees
• the written consents of the owners agreeing to put their shares into the trust and,
• the fully completed application form and the application fee (which is shown on the application form), and
• for whanau or putea trusts, a list of the land interests to be included in the trust.

A. Every trust has an order or "terms of trust" which sets out the responsibilities and obligations of the trustees to the owners/shareholders. You can get a copy of this order from the Maori Land Court.

A. It depends on what the trust order says. A trust order sets out the trustees' responsibilities and obligations to the owners/shareholders. Usually, trustees have to make sure they report back to owners/shareholders at least once a year.

A. A trustee is someone who has been given the legal responsibility of looking after someone else's assets and liabilities for that other person's benefit. You can find out who the trustees of a block of land are at the Maori Land Court.

A. Trustees should hold an Annual General Meeting where they will give a report of activity on the land, etc. Otherwise you can write to them for an update.

A. A trustee is appointed for life or until he resigns, unless otherwise specified in the trust order. Note that the court needs to be satisfied that the trustee is a "worthy appointee". It is unlikely to appoint someone who:

• is bankrupt
• is imprisoned
• is convicted of a crime involving dishonesty
• has a mental disability
• is a minor
• is known to the court to have misconducted him or herself in the administration of a trust
• is in a corporation that is in liquidation or no longer in business.
  

A. Every person who owns shares has a right to vote. If your shares are part of a whanau trust, the trustees represent the beneficiaries at landowners' meetings, but they can only act by majority. If all the trustees cannot attend a meeting and vote together, they should provide the trustee who does attend with a proxy. The vote cannot be split amongst the trustees because the whanau trust holds an individual interest in the land.

A. Yes, trustees should make all records of the trust available to owners/shareholders.

A. There has to be general agreement of the owners or shareholders that a trust is no longer required. A meeting needs to be held or written consent of all the people concerned obtained. An application then needs to be made to the Maori Land Court.

A. The Maori Land Court can provide advice on trust administration. Te Puni Kokiri runs some training courses for trustees and there are private organisations that do this as well.

A. To find out if there is any money being held for you, you need to contact either the trustees of your land or, if there are no trustees, the Maori Trustee.

A. It depends on the type of trust.

• If the trust is an ahu whenua trust, you can still succeed to the interests.
• If the trust is a whenua topu trust, there will be no succession so long as the trust exists (although there is provision for succession to owners of large shares). The land will remain vested in the trustees. The court can however determine who the successors would be when a beneficiary dies because this can help the trustees to maintain the whakapapa.
• If the trust is a whanau trust, there will be no succession to the shares vested in the trust, so long as the trust exists. The shares will remain vested in the trustees. However, the court can determine the successors to a beneficiary of the trust as this can help trustees to maintain the whakapapa. Succession continues to shares not vested in a whanau trust.
• If the trust is a putea trust, there will be no succession so long as the trust exists. The shares will remain vested in the names of the persons entitled to them although in practice the name of the trust will appear in the Maori Land Court 's ownership list. The Court can determine who the successors would be when a beneficiary dies as this can help the trustees to maintain the whakapapa.
  

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April 2008