What Does the Trusts Act 2025 Change for Queensland?
The Trusts Act 2025 modernises Queensland trust law by replacing the 50-year-old Trusts Act 1973 with codified trustee duties, broader trustee powers, and stronger beneficiary protections.
If you’re dealing with Queensland trusts, you’ve been working under legislation that hasn’t had a major update since the early 1970s. With some provisions traced back even further to English Acts from the 1800s.
Thankfully, the Trusts Act 2025 repeals the Trusts Act 1973 entirely and introduces a modern framework built for how trusts actually operate today.
Here’s a quick overview of the main changes, which we’ll break down in detail throughout our guide:
- Expanded trustee powers and codified duties
- New trustee eligibility restrictions
- Stronger beneficiary rights and protections
- District Court jurisdiction for trust disputes
- Simplified trustee appointment and replacement
The Queensland Law Reform Commission completed its review back in December 2013. However, those recommendations sat on the shelf for over a decade.
The Trusts Bill was introduced in 2024 but lapsed on the dissolution of Parliament in October 2024. It was subsequently reintroduced and passed in May 2025, received Royal Assent on 19 May 2025, and commenced on 28 April 2026.
Key Point: The new Act applies to all trusts, including those created before commencement, and the Act binds all parties subject to its terms. It also overrides conflicting provisions in trust instruments unless the Act specifically allows otherwise.
Who Can Be a Trustee Under the New Act?
The Trusts Act 2025 restricts who can be an appointed trustee by disqualifying children, insolvents, certain corporations, and court-banned individuals under section 13. Under the old Trusts Act 1973, there were no statutory restrictions on who could be appointed as a trustee.
We’ll explain each of these restrictions below.
Four Categories of Disqualified Persons
Section 13 sets out four categories of people who can’t be appointed as trustees:
- Children: Minors aren’t eligible to be appointed as trustees under section 13. This restriction applies regardless of what the trust deed says.
- Insolvents Under Administration: Bankrupt individuals and those under debt agreements can’t take on trustee roles while their insolvency continues.
- Chapter 5 Body Corporates: If companies are under external administration or being wound up, they’re automatically disqualified from acting as trustees.
- Court-Disqualified Persons: Anyone banned by court order under section 168 can’t be appointed as a trustee, and any person appointed during the period of disqualification is not validly appointed.
These disqualifications generally can’t be overridden in a trust deed, and a purported appointment of a disqualified person is of no effect. However, there are limited statutory carve-outs (including for personal representatives), and becoming insolvent under administration after appointment does not automatically invalidate an existing appointment.
Limit of Four Trustees Per Trust
Under section 14, trusts can’t have more than four trustees without court approval. This rule existed under the old Act, too, but there are exceptions.
For example, charitable trusts and self-managed superannuation funds aren’t bound by this limit. Because they often require larger governing bodies.
And if you really need more than four trustees, section 15 allows the court to approve additional trustees where it’s appropriate in the particular circumstances of the case.
How Are Trustees Appointed and Replaced?
Trustees are appointed and replaced through simplified processes under the Trusts Act 2025, often without needing a court order.
Under the old Act, replacing a trustee wasn’t always simple. For instance, if the last continuing trustee died or lost capacity, you’d often find yourself heading to court. That meant delays, legal fees, and stress for families already dealing with enough.
Here’s how the new Act makes things easier:
- Simplified Appointment Process: Court orders are no longer the default. Appointors can appoint a new trustee directly, and so can the continuing trustees (that is, any remaining co-trustees or a surviving trustee). The trust instrument may also set out its own mechanism.
- Replacing a Sole Trustee: The old Act provided no clear process for replacing a trustee who died, lost capacity, or became insolvent, so a court application was often required. Now, personal representatives, attorneys, administrators, and even insolvent trustees can appoint a replacement who is willing to act.
- Role of the Public Trustee: Sometimes there may be a gap between trustees, like when the sole trustee dies, and no replacement has yet been appointed. In that situation, the trust property automatically passes to the Public Trustee until a new trustee takes over.
Section 166 still allows the court to appoint or remove trustees when necessary. However, in most cases, that power is now a last resort rather than the first step.
What Powers Do Trustees Now Have?
Trustees now have all the powers of an absolute owner over trust property under section 82, subject to fiduciary duties and the trust instrument.
Trustees worked with a mix of specific powers under the Trusts Act 1973 (Qld). The language was outdated, the limits weren’t always clear, and you’d sometimes need court approval for things that should’ve been straightforward.
Let’s get into more details about the powers trustees have.
All the Powers of an Absolute Owner
Section 82 gives trustees the same powers, authorities, and discretions as an absolute owner in relation to trust property (subject to the Act and the trust instrument). That means they can sell an investment property and restructure a share portfolio or develop land, unless the trust deed says otherwise.
There’s no need to hunt through the Act looking for a specific provision that covers what you’re trying to do (it’s a practical improvement).
That said, this isn’t a blank cheque. Trustees must exercise the powers conferred by the Act and the trust instrument honestly, in good faith and in the interests of the beneficiaries. And if the trust instrument sets out additional limits, those still apply too.
Delegation of Investment Powers
Not every trustee has the time or expertise to manage trust investments actively. Section 76 now allows trustees to delegate their powers to another person. That person may be a financial adviser, fund manager, or other professional investor.
And under section 77, a trustee remains responsible for the acts of a delegate when exercising an investment power. This provision means delegation doesn’t transfer responsibility.
Dealing With Trust Property
The old Act had some frustrating limits. For one, trustees couldn’t spend more than $10,000 on property improvements without getting court approval. That’s gone now.
Section 85 gives trustees broad power to maintain, renovate, improve, develop, and even subdivide trust property (subject to local government planning requirements). In the case of residential property, section 75 further allows trustees to provide a dwelling house as a residence for a beneficiary.
Tip: Before relying on statutory powers, confirm that the trust hasn’t opted out of them in whole or in part.
What Are the Codified Trustee Duties?
The Trusts Act 2025 codifies trustee duties in the legislation for the first time. It requires trustees to act with care and skill, act honestly and in good faith, and keep proper records.
We’ll now take a closer look at these duties.
Care, Diligence and Skill
According to the new Trusts Act, every trustee must meet a minimum standard of care that can’t be excluded by the trust deed.
And Section 62 sets the baseline for this: trustees must show the care, diligence and skill that a sensible businessperson would use when managing someone else’s affairs.
Most importantly, it applies to both professional and non-professional trustees, including family members. And unlike before, you can’t contract out of it in the trust deed.
Higher Standards for Professional Trustees
The benefit of holding professionals to a higher standard is greater protection for beneficiaries. It reduces the risk of careless trust management and ensures that trustees with expertise are judged against the level of skill they claim to have.
That’s why section 60 applies a stricter test to professional trustees, which would include a licensed trustee company acting in that capacity. Instead of the ordinary prudent person standard, they’re measured against what a competent member of their profession would do.
Section 61 extends the same standard to anyone who claims special expertise, even if they’re not formally a professional.
Acting Honestly and in Good Faith
Trustees must act honestly and in good faith at all times when exercising power under section 63. In most trusts, that means acting in the best interests of the beneficiaries.
Charitable trusts are slightly different, as trustees must further the trust’s purposes instead. Either way, self-dealing and conflicts of interest are now completely off the table.
Record-Keeping Requirements
Poor record-keeping can now expose trustees to personal liability. Section 64 makes this clear: keep accurate accounts and records, and hold onto them for at least three years after the trust ends (a clear compliance signal).
And if you’re managing multiple trusts, you’ll need separate accounts for each. When disputes arise, records relating to any delegate or former delegate are the first thing beneficiaries ask for.
What Rights Do Beneficiaries Have?
Beneficiaries have stronger rights under the Trusts Act 2025, including access to trust records, higher capital advancements, and direct remedies for wrongful distribution.
The old Act provided no express statutory right to inspect trust records. For example, getting information from trustees was difficult, and financial support was capped at seriously low amounts. Plus, it was almost impossible to recover misapplied trust property.
The 2025 reforms introduce the following rights for beneficiaries.
Access to Trust Records and Accounts
Greater transparency allows beneficiaries to check how trustees manage trust assets. Section 65 supports that goal by giving beneficiaries a clear statutory right to inspect the trust’s accounts and to request copies within a reasonable period (subject to an “unreasonable request” exception and payment of reasonable copying costs). It also preserves any broader rights a beneficiary may have to seek other information, including by applying to the court.
No more relying solely on common law rights that varied depending on which case you cited.
This right extends to potential beneficiaries, too. For instance, if you’re named in a discretionary trust but haven’t received a distribution yet, you can still ask to see the accounts. This practical measure helps keep trustees accountable.
Risk alert: Incomplete disclosure may trigger allegations of concealment, even if the omission wasn’t deliberate.
Increased Capital Advancement to $100,000
The old $2,000 limit hadn’t changed in decades and was completely out of touch. To give you a clear picture, consider this scenario: a trustee managing a multimillion-dollar family trust couldn’t advance more than $2,000 for a beneficiary’s education or maintenance without breaching the Act.
A low figure like that made sense in the 1970s, but not anymore.
Sections 128 and 130 now allow trustees to advance up to $100,000 for a beneficiary’s maintenance, education, or advancement. However, the amount can’t exceed half of the beneficiary’s expected share of the trust capital.
Direct Remedies for Wrongful Distribution
Beneficiaries can now recover trust property faster by going straight to the recipient. Previously, if a trustee distributed trust property contrary to the intended distribution under the trust deed, the beneficiary had to sue the trustee first. Only after exhausting those remedies could they pursue the recipient.
That process was slow, expensive, and often pointless if the trustee had no money. But sections 274 and 275 allow beneficiaries to pursue the person who received wrongly distributed trust property directly.
The provisions apply retrospectively, too, as long as proceedings hadn’t already commenced before the Act took effect.
How Does the District Court Get Involved?
The District Court now has jurisdiction for certain Trusts Act 2025 applications within the District Court’s monetary limit. It makes litigation more affordable and accessible than Supreme Court proceedings.
Previously, these applications had to be brought to the Supreme Court.
Here’s how this change could save Queensland families thousands in legal fees:
- $750,000 Jurisdiction Threshold: The District Court can exercise jurisdiction for certain Trusts Act 2025 applications where the value of trust property (or relevant property) falls within the District Court limits (currently $750,000). It’s a more practical and cost-effective option for smaller family trusts and testamentary trusts.
- Appointing and Removing Trustees: Under Section 166, courts can appoint, remove or replace trustees where it’s impracticable or impossible to do so under the trust instrument. The court can also act on its own initiative without waiting for an application.
- Disqualifying Trustees for Serious Breaches: Section 168 allows the court to disqualify a person for a stated period from appointment as trustee of any trust. For example, a trustee who mismanages one trust fund could find themselves barred from appointment for a stated period.
- Reducing Excessive Trustee Fees: Beneficiaries (or any other interested person) can apply to have commission and professional charges reviewed under section 161. For instance, if a private trustee charges inflated accounting fees, beneficiaries can ask the court to reduce them.
- Cy-Près for Charitable Trusts: If a charitable trust’s original purpose can no longer be carried out, the trustee may apply to the Attorney-General to approve a new similar purpose. It can be done without full court proceedings, provided the trust’s value falls within the District Court’s monetary limit.
These provisions modernise court supervision without diluting judicial authority.
How Does the 125-Year Perpetuity Reform Relate to the Trusts Act 2025?
While the 125-year perpetuity period sits in the Property Law Act 2023, it directly affects how long trusts governed by the Trusts Act 2025 can operate before vesting. This change commenced on 1 August 2025 and applies broadly to trusts governed by Queensland law. It replaces the old 80-year limit with one of the longest perpetuity periods in Australia.
This is how the reform affects the new Trusts Act:
- Property Law Act 2023 Changes: Section 201 abolishes the common law rule against perpetuities and sets a fixed 125-year perpetuity period. It aligns Queensland with modern trust jurisdictions like the United Kingdom, which made a similar change in 2010.
- Automatic Application to New Trusts: Trusts created on or after 1 August 2025 automatically have a 125-year perpetuity period unless the trust instrument specifies a shorter term. There’s no need to include special wording in the deed.
- Opting In for Existing Trusts: Existing trusts may be able to extend their vesting date if the trust deed’s variation power permits it. Alternatively, adult beneficiaries may consent where appropriate, or the trustee may apply to the Supreme Court for an order varying the trust.
- Tax Implications of Vesting: Extending the perpetuity period may defer CGT and, in some cases, transfer duty consequences that could arise when a trust vests. Once a trust reaches its vesting date, the trustee must finalise the trust and distribute the trust assets. That process can create significant tax implications.
The legislation gives Queensland trusts more time to plan, but whether to use that extra time will depend on careful advice.
How Does the Act Affect Estate Administration?
The Trusts Act 2025 affects estate administration by treating personal representatives as trustees and limiting the time to wrap up a deceased’s business to two years. These changes bring executors’ duties into line with the new codified trustee duties. It also creates clearer timeframes for completing estate administration.
We’ll break down these reforms below.
Two-Year Limit to Wind Up a Business
Under a new section 49B in the Succession Act 1981, personal representatives have two years to wind up a deceased’s business. The clock starts from the date of death.
And the executor can only keep running the business to the extent necessary to realise its value. If two years isn’t enough, the Supreme Court can extend this period in particular circumstances (delay without evidence of active steps may not justify an extension, though).
But the default position is clear: get it done or get approval. This new limit speeds up estate finalisation. It also stops beneficiaries from waiting years for distributions while an executor runs a business with no clear end in sight.
Personal Representatives as Trustees
Executors and administrators now fall within the definition of trustee under the Trusts Act 2025. Personal representatives have the same powers as any appointed trustee, including all the powers of an absolute owner over trust property.
But with those powers come obligations. As we mentioned earlier, executors must now exercise care, diligence, and skill and act honestly and in good faith. They also have to keep accurate records for at least three years after the estate is finalised.
In other words, the days of informal estate administration are over.
Important note: Executors who are also business partners must carefully manage conflicts between personal and estate interests.
What Should Trustees and Beneficiaries Do Now?
Now that the Trusts Act 2025 has commenced, trustees and beneficiaries should review their trust deeds, confirm trustee eligibility, and update governance practices to ensure ongoing compliance.
The Act applies to all trusts, regardless of when they were created. So even if your trust has been running smoothly for decades, you should check that everything still lines up.
Check these things right away.
Review Your Trust Deed
You need to compare your trust deed against the Trusts Act 2025. Look for any provisions that conflict with the new codified trustee duties or record-keeping requirements. For example, if your deed contains outdated clauses that limit a trustee’s responsibilities, they may no longer be valid under the new Act.
You should also consider extending the perpetuity period if your deed’s variation power permits it. And if your current governance practices don’t include keeping records for at least three years after the trust ends, you should deal with it as soon as possible.
Confirm Trustee Eligibility
The main advantage of early eligibility checks is that they reduce the risk of disputes. During this process, go through your current trustees and look for anyone who falls into the four disqualified categories: children, insolvents under administration, Chapter 5 body corporates, or persons banned by court order.
If someone doesn’t meet the new trustee eligibility rules, you’ll need to arrange a replacement before problems arise.
The same applies if they develop an impaired capacity that results in the appointment of an administrator under the Guardianship and Administration Act.
Finally, you must review your succession arrangements during the eligibility checks, including whether a power of attorney is in place to deal with incapacity. For example, do you have a clear and workable process for appointing a replacement trustee if something happens to your continuing trustee? If not, seek legal advice now.
Planning point: Keep a clear paper trail of resignation and appointment steps to avoid gaps in legal title.
Final Thoughts on the Trusts Act 2025
The Trusts Act 2025 introduces major reforms to Queensland trust law after more than 50 years. Trustees now have broader powers, but they’re also subject to clear legal duties that can’t be excluded. Plus, the Act binds trustees and beneficiaries according to its terms.
And the District Court can now handle disputes up to $750,000, which makes litigation more accessible.
If you’re a trustee or beneficiary, the time to act is now. Review your trust deed, check trustee eligibility, and update your record-keeping practices now that the Act has commenced.
If you’re unsure how these changes affect your situation, book your free telephone consultation with us.
