Minor not bound by Deed of Family Arrangement

Arrangements that vary or terminate trusts are commonly (but not necessarily) recorded in deeds of family arrangement.  That said, regardless of how any settlement is styled, to effect a change in accordance with the rule in Saunders v Vautier, or section 121 of the Trusts Act 2019, without the assistance of the Court, strict compliance is necessary.   This is highlighted in Casey v Blair-Bellamy where a deed of family arrangement purported to vary a statutory trust in favour of a minor that arose on intestacy.  As noted at [102] “The statutory trust in favour of Charlie could have been varied by the Court under s 124 of the Trusts Act.”   This did not happen.”  Accordingly, as set out at [120]:

“Mr Blair-Bellamy did not have the power to bind Charlie to the deed. Charlie did not execute the deed as a party and Charlie is not bound by it. The purported variation of the statutory trust in favour of Charlie is invalid.”

Vicki Ammundsen will be discussing this case in the context of trust wind ups. See https://www.cchlearning.co.nz/events/5130-trust-series-2026-winding-up-a-trust-package/

References

• Casey v Blair-Bellamy [2026] NZHC 1935