Big changes are coming to Queensland trust law
Queensland has introduced the Trusts Act 2025 (Qld), which will replace the Trusts Act 1973. The new Act aims to update how trusts are managed, making it easier for trustees and offering better protection for beneficiaries.
The Act will take effect from 28 April 2026.
What this Means for You
If you’re a trustee or a beneficiary of a trust, these changes may affect how your trust is managed. Below is a summary of some of the key updates:
1. Clearer Powers and Responsibilities for Trustees
Trustees now have broader powers to manage trusts more efficiently. For example, they can:
Delegate certain tasks; and
Make some decisions without needing court approval.
It also introduces new minimum statutory duties for trustees, including:
A general duty to exercise care, diligence and skill in administering trusts;
A duty to act honestly and in good faith;
A duty, in the case of charitable trusts, to further the trust’s purposes, and for all other trusts, to act for the benefit of the beneficiaries; and
A duty to maintain accurate trust records and accounts, and to make them available for inspection and copying by beneficiaries upon request. These records must be retained for at least three years after the trust terminates.
2. Easier Process for Replacing Trustees
Pending the terms of a trust deed, the new rules make it easier to replace a trustee if they become incapacitated or bankrupt. For example, in some cases, a person’s financial attorney can step in if no one else is available.
3. More Support for Beneficiaries
The maximum amount that can be provided from the trust capital for a beneficiary’s maintenance, education, or advancement has increased from $2,000 to $100,000—making trust support more meaningful in today’s financial climate.
4. Simpler Dispute Resolution
Small-scale trust disputes can now be resolved more efficiently, without always needing to go to court—saving time and costs.
5. Clearer Rules About Who Can Be a Trustee
The new Act aims to ensure that only appropriate people can serve as trustees. Minors and people who are insolvent are no longer eligible.
Trustees should carefully review the new provisions to ensure ongoing compliance and determine whether existing trust deeds require amendment in light of these changes.
If you would like to discuss any of these issues in further detail, please get in touch with one of the Estate Planning Team at MDL.
To speak to a team member about the new changes or trusts generally, please call our office on 07 3370 5100 or email info@mdl.com.au.
The comments, information and opinions in this document are of a general nature and are not intended to be specific advice as they are based on McCarthy Durie Lawyers interpretation of the law as at the date this document was prepared. It is always possible the law and position may change as a result of cases, rulings, decisions or legislations. We recommend you obtain specific advice in relation to your own individual circumstances and the implications before considering any of the above or implementing these strategies.
