{"id":"BILL-QLD-3239","name":"Trusts Bill 2025","slug":"trusts-bill-2025","collection":"bill","jurisdiction":"qld","status":"in_force","isInForce":true,"actNumber":null,"makingDate":"2025-01-01","administeringDepartment":null,"currentVersion":{"id":446115,"registerId":"BILL-QLD-3239:current","compilationNumber":null,"startDate":"2025-01-01","status":"in_force","reasons":null,"registeredAt":"2026-05-06T12:45:22.457Z"},"sections":[{"sectionNumber":"retrieval-0001","sectionType":"document_chunk","heading":"Document excerpt 1","content":"# Trusts Bill 2025\n\nQueensland\nTrusts Bill 2025\n\nQueensland\nTrusts Bill 2025\nContents\nPage\nPart 1 Preliminary\nDivision 1 Introduction\n1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20\n2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20\n3 Application of Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20\n4 Act binds all persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21\nDivision 2 Interpretation\n5 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21\n6 Meaning of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21\n7 Meaning of trustee and statutory trustee . . . . . . . . . . . . . . . . . . . 21\n8 Meaning of trust instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22\n9 Meaning of trust property and references to trust property . . . . . 22\n10 Meaning of capacity and impaired capacity . . . . . . . . . . . . . . . . 23\n11 Meaning of charitable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23\n12 References to security when lending or investing trust funds . . . 24\nPart 2 Restrictions on appointment of trustees and related matters\n13 Persons who can not be appointed as trustees . . . . . . . . . . . . . 24\n14 Limit on number of trustees of particular trusts . . . . . . . . . . . . . . 25\n15 Court approval of more than 4 trustees for particular trusts . . . . 26\n16 Local government trustees may act in administration of trusts . . 27\nPart 3 Appointment, discharge and removal of trustees and devolution of\ntrusts\nDivision 1 Preliminary\n17 Application of part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27\n18 When appointors are not able and willing to act . . . . . . . . . . . . . 28\nDivision 2 Appointment of trustees\n19 Application of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28\n\nContents\nTrusts Bill 2025\nPage 2\nAuthorised by the Parliamentary Counsel\n20 Appointment of trustees—replacement of trustee in particular\ncircumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29\n21 Appointment of trustees—replacement of last continuing trustee who is\ndead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30\n22 Appointment of trustees—replacement of last continuing trustee with\nimpaired capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32\n23 Appointment of trustees—replacement of last continuing trustee who is\ninsolvent under administration . . . . . . . . . . . . . . . . . . . . . . . . . . . 33\n24 Appointment of trustees—additional trustees . . . . . . . . . . . . . . . 34\n25 Appointment of trustees—separate trustees of separate trust property\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35\n26 Powers etc. of trustees appointed under division . . . . . . . . . . . . 35\nDivision 3 Discharge and removal of trustees\n27 When minimum trustee requirements are satisfied . . . . . . . . . . . 36\n28 Discharge of trustee on appointment of new trustee . . . . . . . . . . 36\n29 Removal and discharge of trustee without appointment of new trustee\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37\n30 Discharge of trustee who wishes to be discharged . . . . . . . . . . . 37\nDivision 4 Notification of former delegate if trustee is replaced, removed or\ndischarged\n31 Particular persons to notify person who was trustee’s delegate . 38\nDivision 5 Vesting of trust property on appointment, removal or discharge of\ntrustees\n32 Application of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39\n33 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40\n34 Vesting of trust property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40\n35 Transfer etc. of trust property . . . . . . . . . . . . . . . . . . . . . . . . . . . 41\nDivision 6 Devolution of trusts on death of trustee\n36 Exercise of trust powers etc. by surviving trustees . . . . . . . . . . . 42\nDivision 7 Vesting of trust property and devolution of trusts—death of last\ncontinuing trustee\n37 Application of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42\n38 Vesting of trust property in public trustee . . . . . . . . . . . . . . . . . . 42\n39 Powers etc. of public trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43\n40 Vesting of trust property in new trustee . . . . . . . . . . . . . . . . . . . . 43\n41 Vesting of trust property in holder of grant . . . . . . . . . . . . . . . . . 44\n42 Powers etc. of holder of grant . . . . . . . . . . . . . . . . . . . . . . . . . . . 44\n43 Liability of public trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45\n\nContents\nTrusts Bill 2025\nPage 3\nAuthorised by the Parliamentary Counsel\nDivision 8 Disclaimer of trusts of wills and related matters\n44 Disclaimer of trust of will on renunciation of probate or failure to apply\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45\n45 When grantee under letters of administration is taken to be trustee of will\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46\nPart 4 Custodian trustees\n46 Meaning of managing trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . 46\n47 Appointment of custodian trustee . . . . . . . . . . . . . . . . . . . . . . . . 46\n48 Vesting of trust property in custodian trustee . . . . . . . . . . . . . . . 47\n49 Trust powers, authorities and discretions of managing trustees not\naffected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48\n50 Function of custodian trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . 48\n51 Protection from liability for custodian trustee . . . . . . . . . . . . . . . . 49\n52 Liability of managing trustees for acts and omissions of custodian trustee\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49\n53 Application by custodian trustee for directions . . . . . . . . . . . . . . 49\n54 Proceedings to be in name of custodian trustee . . . . . . . . . . . . . 50\n55 Persons dealing with custodian trustee . . . . . . . . . . . . . . . . . . . . 50\n56 Ending custodian trusteeship . . . . . . . . . . . . . . . . . . . . . . . . . . . 50\n57 Right to indemnity not affected . . . . . . . . . . . . . . . . . . . . . . . . . . 51\nPart 5 Trustees’ duties\nDivision 1 Preliminary\n58 Application of part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51\n59 Definitions for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51\nDivision 2 General duty to exercise care, diligence and skill in administering\ntrusts\n60 Duty of professional trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52\n61 Duty of particular non-professional trustees . . . . . . . . . . . . . . . . 52\n62 Duty of other trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52\nDivision 3 Duty to act honestly and in good faith\n63 Duty to act honestly and in good faith . . . . . . . . . . . . . . . . . . . . . 53\nDivision 4 Duties relating to accounts and other records\n64 Duty to keep accounts and other records . . . . . . . . . . . . . . . . . . 53\n65 Duty to make accounts available for inspection and to provide copies\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54\nPart 6 Investments\n\nContents\nTrusts Bill 2025\nPage 4\nAuthorised by the Parliamentary Counsel\nDivision 1 Preliminary\n66 Definitions for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54\nDivision 2 Duty of particular trustees to exercise care, diligence and skill in\nexercising investment powers\n67 Duty of trustees who are professional investors . . . . . . . . . . . . . 55\n68 Duty of particular trustees who are not professional investors . . 55\nDivision 3 Duties and powers in relation to investments\n69 Power to invest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56\n70 Law and equity preserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57\n71 Matters to which trustee must have regard in exercising investment\npower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57\n72 Advice for particular investment purposes . . . . . . . . . . . . . . . . . 58\n73 Duty to review investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59\n74 Investment in securities under RITS system . . . . . . . . . . . . . . . . 59\n75 Power to provide residence for beneficiary to live in . . . . . . . . . . 59\n76 Power to authorise another person to exercise trustee’s investment\npowers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61\nDivision 4 Liability of trustees in relation to exercise of investment powers\n77 Liability of trustee for acts and omissions of person authorised to\nexercise trustee’s investment powers . . . . . . . . . . . . . . . . . . . . . 61\n78 Particular loans by trustee not in breach of trust . . . . . . . . . . . . . 62\n79 Limitation of liability of trustee for loss on improper investment . 62\n80 Court may take into account investment strategy etc. in proceeding for\nbreach of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63\n81 Court may set off gains and losses . . . . . . . . . . . . . . . . . . . . . . . 64\nPart 7 General powers of trustees\nDivision 1 Powers in relation to trust property\n82 General powers in relation to trust property . . . . . . . . . . . . . . . . 64\n83 Power to postpone sale, calling in and conversion of particular trust\nproperty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65\n84 Power to execute instruments etc. . . . . . . . . . . . . . . . . . . . . . . . 66\nDivision 2 Expenditure in relation to trust property\n85 Power to expend amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66\n86 Power to apportion expenditure between income and capital and recoup\nparticular expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67\nDivision 3 Appropriation\n87 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67\n88 Notice of proposed appropriation . . . . . . . . . . . . . . . . . . . . . . . . 68\n\nContents\nTrusts Bill 2025\nPage 5\nAuthorised by the Parliamentary Counsel\n89 Interested person may apply to vary proposed appropriation or waive\nright to apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68\n90 Appropriation to satisfy legacy or share generally . . . . . . . . . . . . 69\n91 Exercise of power for particular interested persons and entitled persons\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71\n92 Appropriation to pay annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72\n93 Notice to relevant registrar if land or water allocation to be distributed\nafter appropriation to pay annuity . . . . . . . . . . . . . . . . . . . . . . . . 73\nDivision 4 Delegation\nSubdivision 1 Preliminary\n94 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73\nSubdivision 2 Delegation by trustees\n95 Power to delegate matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73\n96 Period during which delegation is in effect . . . . . . . . . . . . . . . . . 74\n97 Effect of delegation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75\n98 Liability of trustee for acts and omissions of delegate . . . . . . . . . 76\n99 Trustee to notify particular persons of delegation . . . . . . . . . . . . 76\nSubdivision 3 Revocation of delegation\n100 Revocation by trustee—instrument of revocation . . . . . . . . . . . . 77\n101 Revocation by trustee—impaired capacity for administering trust 77\n102 Revocation by delegate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77\nSubdivision 4 Protections for third parties\n103 Definition for subdivision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78\n104 Validity of particular acts of delegate in favour of third party . . . . 78\n105 Effect of statutory declaration by delegate . . . . . . . . . . . . . . . . . 79\n106 Persons dealing with delegate in good faith not affected by notice of trust\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79\nDivision 5 Appointment of agents\n107 Appointment of agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79\n108 Payment of agent and reimbursement of trustee . . . . . . . . . . . . 80\nDivision 6 Application of income by trustee-mortgagee in possession\n109 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80\n110 Application of income—priority outgoings accruing after trustee becomes\nmortgagee in possession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81\n111 Payment to primary beneficiary on recovery of all or part of mortgage\ndebt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81\n112 Application of income—priority outgoings accruing before trustee\n\nContents\nTrusts Bill 2025\nPage 6\nAuthorised by the Parliamentary Counsel\nbecomes mortgagee in possession . . . . . . . . . . . . . . . . . . . . . . . 82\nDivision 7 Delivery of chattels\n113 Delivery of chattels to beneficiary with life interest or other limited interest\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83\n114 Delivery of chattels to child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83\nDivision 8 Other provisions\n115 Application of insurance money . . . . . . . . . . . . . . . . . . . . . . . . . 84\n116 Deposit of documents for safe custody . . . . . . . . . . . . . . . . . . . . 85\n117 Valuations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85\n118 Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86\n119 Trustee may sue and be sued by themself in another capacity . 87\n120 Inquiries about beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87\n121 Exercise of trustee powers when particular beneficiaries are absolutely\nentitled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87\n122 Effect of conversion of land or personal property under statutory power\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88\nPart 8 Maintenance, education and advancement\nDivision 1 Preliminary\n123 Definition for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89\nDivision 2 Application of trust income\n124 Child beneficiaries—application of trust income for maintenance etc. 89\n125 Child beneficiaries—investment and application of unexpended trust\nincome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90\n126 Adult beneficiaries—application of trust income for maintenance etc. 92\n127 Vested annuities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92\nDivision 3 Application of trust capital\n128 Application of trust capital for beneficiary’s maintenance etc. . . . 93\n129 Restriction on application of trust capital . . . . . . . . . . . . . . . . . . . 94\n130 Prescribed amount for application of trust capital . . . . . . . . . . . . 94\n131 Trust capital paid or applied to be brought into account . . . . . . . 95\nDivision 4 Imposition of conditions\n132 Trustee may impose conditions . . . . . . . . . . . . . . . . . . . . . . . . . . 96\n133 Amounts repaid or recovered taken not to have been paid or applied 97\n134 Trustee not liable for losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97\nPart 9 Indemnities and protection of trustees and other persons\nDivision 1 Distributing trust property","sortOrder":0},{"sectionNumber":"retrieval-0002","sectionType":"document_chunk","heading":"Document excerpt 2","content":"Contents\nTrusts Bill 2025\nPage 7\nAuthorised by the Parliamentary Counsel\n135 Giving notice of intention to distribute . . . . . . . . . . . . . . . . . . . . . 98\n136 Protection of trustee distributing after closing day . . . . . . . . . . . . 99\nDivision 2 Claims against trust property and trustees\n137 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100\n138 Trustee may require claimant or potential claimant to start proceeding\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100\n139 Trustee may apply to court for orders in relation to claim . . . . . . 101\n140 Court may make orders in relation to claim . . . . . . . . . . . . . . . . . 101\n141 Contesting trustee’s right to indemnity . . . . . . . . . . . . . . . . . . . . 102\nDivision 3 Remedies for wrongful distribution of trust property\n142 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102\n143 Enforcement of remedies for wrongful distribution . . . . . . . . . . . 103\n144 Effect of change of position of recipient . . . . . . . . . . . . . . . . . . . 103\n145 Other defences available to recipient not limited . . . . . . . . . . . . . 104\nDivision 4 Particular protections for trustees\n146 Protection relating to notice when person is trustee of more than 1 trust\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104\n147 Protection in relation to receipts . . . . . . . . . . . . . . . . . . . . . . . . . 104\n148 Protection in relation to acts and omissions of other persons and losses\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104\n149 Expenses reasonably incurred in administering trust . . . . . . . . . 105\n150 Protection against liability for rents etc. under lease . . . . . . . . . . 105\nDivision 5 General\n151 Evidence about vacancy in trust or removal of trustee . . . . . . . . 107\n152 Protection for persons registering dealings with trust property . . 107\n153 Protection for purchasers and mortgagees . . . . . . . . . . . . . . . . . 108\n154 Receipts given by trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108\n155 Power of court to relieve trustee from personal liability . . . . . . . . 108\n156 Power of court to make beneficiary indemnify for breach of trust 109\n157 Indemnity for acts done under court order . . . . . . . . . . . . . . . . . 109\nPart 10 Remuneration of trustees\n158 Definitions for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109\n159 Remuneration of professional trustees . . . . . . . . . . . . . . . . . . . . 110\n160 Remuneration of trustees under court order . . . . . . . . . . . . . . . . 110\n161 Court may reduce excessive amounts for commission and professional\ncharges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110\n\nContents\nTrusts Bill 2025\nPage 8\nAuthorised by the Parliamentary Counsel\nPart 11 Court powers\nDivision 1 Preliminary\n162 Definition for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111\nDivision 2 Applications for orders\n163 Persons who may apply for particular orders relating to trusts and trust\nproperty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111\n164 Persons who may apply for orders relating to interests in mortgaged\nproperty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112\n165 Persons who may apply for orders relating to other property . . . 113\nDivision 3 Appointment and removal of trustees and other office holders and\nrelated matters\n166 Power to appoint and remove trustees . . . . . . . . . . . . . . . . . . . . 113\n167 Powers etc. of trustees appointed by court . . . . . . . . . . . . . . . . . 114\n168 Power to disqualify persons from appointment as trustees and remove\nthem as trustees of other trusts . . . . . . . . . . . . . . . . . . . . . . . . . . 114\n169 Power to appoint and remove particular office holders . . . . . . . . 115\nDivision 4 Vesting orders and related matters\n170 Application of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116\n171 Court may make vesting and other orders etc. . . . . . . . . . . . . . . 118\n172 Restrictions on vesting orders in particular circumstances . . . . . 119\n173 Effect of vesting and other orders . . . . . . . . . . . . . . . . . . . . . . . . 120\n174 Transfer of property under vesting order . . . . . . . . . . . . . . . . . . . 120\n175 Powers etc. of person named in vesting order as trustee . . . . . . 121\n176 Circumstances relating to validity of vesting and other orders etc. 121\nDivision 5 Orders in relation to property and claims of children\n177 Court may make orders in relation to property or claim of child . 122\nDivision 6 Conferral of additional management powers\n178 Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123\n179 Court may confer additional management powers . . . . . . . . . . . 124\n180 Court may revoke or vary order . . . . . . . . . . . . . . . . . . . . . . . . . . 125\n181 Persons who may apply for order . . . . . . . . . . . . . . . . . . . . . . . . 125\nDivision 7 Variations of trusts\n182 Meaning of protective trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125\n183 Power of court to authorise variations of trust . . . . . . . . . . . . . . . 126\nDivision 8 Applications for directions\n184 Court may give directions about particular matters . . . . . . . . . . . 128\n185 Protection of trustee acting under court directions . . . . . . . . . . . 128\n\nContents\nTrusts Bill 2025\nPage 9\nAuthorised by the Parliamentary Counsel\nDivision 9 Reviews of decisions and directions for apprehended decisions\n186 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129\n187 Application for review or directions . . . . . . . . . . . . . . . . . . . . . . . 129\n188 Grounds for review or directions . . . . . . . . . . . . . . . . . . . . . . . . . 130\n189 Orders and directions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130\nDivision 10 Other matters\n190 Court may decide proceeding in absence of trustee . . . . . . . . . . 131\n191 Court may appoint representative or make orders in absence of party or\ninterested person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131\n192 Court may charge costs on property . . . . . . . . . . . . . . . . . . . . . . 132\n193 Payment of particular trust property into court by trustees . . . . . 132\nPart 12 Charitable trusts\nDivision 1 Trusts containing non-charitable and invalid purposes\n194 Inclusion of non-charitable and invalid purpose not to invalidate trust\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133\nDivision 2 Applications to court in relation to charitable trusts\n195 Who may apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134\n196 Notice of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134\n197 Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135\nDivision 3 Schemes to allow trust property to be applied cy pres\nSubdivision 1 Preliminary\n198 References to purposes of charitable trust . . . . . . . . . . . . . . . . . 135\n199 Circumstances in which purposes of charitable trust may be changed\nunder sdiv 2 or 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136\n200 Relationship with Charitable Funds Act 1958 . . . . . . . . . . . . . . . 137\nSubdivision 2 Approval of schemes by court\n201 Court may approve scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137\nSubdivision 3 Approval of schemes by Attorney-General\n202 Trustee may apply to Attorney-General to approve scheme . . . . 138\n203 Requirements for public notice etc. . . . . . . . . . . . . . . . . . . . . . . . 138\n204 Powers of Attorney-General . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139\n205 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139\n206 Public notice of Attorney-General’s decision . . . . . . . . . . . . . . . . 140\n207 Effect of decision to approve scheme . . . . . . . . . . . . . . . . . . . . . 141\n208 Appeal against decision to approve scheme . . . . . . . . . . . . . . . . 141\n209 Application for court approval not prevented by decision to refuse to\napprove scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142\n\nContents\nTrusts Bill 2025\nPage 10\nAuthorised by the Parliamentary Counsel\n210 Register of approvals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142\nSubdivision 4 Duty of trustees to make cy pres applications\n211 Duty of trustee in relation to application of property cy pres . . . . 142\nPart 13 Gifts by particular trustees to charity-like government entities or\nother entities\n212 Definitions for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143\n213 Prescribed trust—trust instrument containing express power to give to\neligible recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144\n214 Prescribed trust—trust instrument not containing express power to give\nto eligible recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144\n215 Application of Act to prescribed trust . . . . . . . . . . . . . . . . . . . . . . 145\nPart 14 Statutory trustees\n216 Restriction on exercise of particular powers by statutory trustees 146\n217 Rights, duties and protections of statutory trustees . . . . . . . . . . 146\nPart 15 Miscellaneous\n218 Regulation-making power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147\n219 Approved forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147\nPart 16 Repeal\n220 Repeal of Trusts Act 1973 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147\nPart 17 Transitional and validation provisions\nDivision 1 Preliminary\n221 Definition for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147\n222 Application of Acts Interpretation Act 1954 . . . . . . . . . . . . . . . . . 148\nDivision 2 Restrictions on appointment of trustees\n223 Existing trustees not affected by particular restrictions on appointment\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148\n224 Existing trusts with more than 4 trustees . . . . . . . . . . . . . . . . . . . 148\n225 Existing certificates of Minister approving of more than 4 trustees 149\nDivision 3 Provisions for appointment, discharge and removal of trustees and\ndevolution of trusts\n226 Appointment of trustees—replacement of trustee in particular\ncircumstances happening or starting before commencement . . . 149\n227 Appointment of trustees—replacement of last continuing trustee who is\ndead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150\n228 Appointment of trustees—replacement of last continuing trustee with\nimpaired capacity or who is insolvent under administration . . . . 150\n229 Appointment of trustees—additional trustees . . . . . . . . . . . . . . . 150\n230 Vesting of trust property in existing trustees . . . . . . . . . . . . . . . . 150\n\nContents\nTrusts Bill 2025\nPage 11\nAuthorised by the Parliamentary Counsel\n231 Powers etc. of existing trustees appointed under repealed Act, s 12 151\n232 Removal and discharge of trustees in particular circumstances\nhappening or starting before commencement . . . . . . . . . . . . . . . 151\n233 Application of requirement to notify former delegate of trustee’s\nreplacement, removal or discharge . . . . . . . . . . . . . . . . . . . . . . . 152\n234 Vesting and divesting of particular trust property if trustees appointed or\ndischarged before commencement . . . . . . . . . . . . . . . . . . . . . . . 152\n235 Exercise of trust powers etc. by surviving trustees . . . . . . . . . . . 152\n236 Vesting of trust property and devolution of trusts—death of last\ncontinuing trustee before commencement . . . . . . . . . . . . . . . . . 152\n237 Vesting of trust property and devolution of trusts—death of last\ncontinuing trustee after commencement . . . . . . . . . . . . . . . . . . . 153\n238 Mortgage estates vested in public trustee before commencement 154\n239 When grantee under letters of administration taken to be trustee of will\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154\nDivision 4 Provisions for custodian trustees\n240 Application of pt 4 to existing trusts . . . . . . . . . . . . . . . . . . . . . . . 154\n241 Application of Act to existing custodian trustees . . . . . . . . . . . . . 154\nDivision 5 Provisions for investments\n242 Investment advice obtained before commencement . . . . . . . . . . 155\n243 First review of existing trust investments . . . . . . . . . . . . . . . . . . . 155\n244 Dwelling house purchased etc. as residence before commencement\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156\n245 Liability for particular loans made by trustee before commencement\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157\n246 Proceedings against trustees for breach of trust in relation to exercise of\ninvestment power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157\n247 Set off of gains and losses in proceedings for breach of trust . . . 157\n248 Particular references in documents to authorised investments etc. 158\nDivision 6 Provisions for general powers of trustees\n249 Application of general powers in relation to existing trust property 159\n250 Power to apportion particular expenditure and payments made before\ncommencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159\n251 Existing notices of appropriation . . . . . . . . . . . . . . . . . . . . . . . . . 160\n252 Appropriation before commencement to pay annuity or periodic payment\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160\n253 Distribution of land after notice given to registrar or other person before\ncommencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161\n\nContents\nTrusts Bill 2025\nPage 12\nAuthorised by the Parliamentary Counsel\n254 Conveyance of property sold before commencement on terms of\ndeferred payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161\n255 Delegation of matter by power of attorney in operation before\ncommencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162\n256 Existing appointments of agents . . . . . . . . . . . . . . . . . . . . . . . . . 162\n257 Application of income by trustee-mortgagee in possession . . . . 162\n258 Application of insurance money . . . . . . . . . . . . . . . . . . . . . . . . . 163\n259 Payment for deposit of documents for safe custody before\ncommencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163\n260 Valuations if required consultation undertaken before commencement\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163\n261 Audit conducted before commencement . . . . . . . . . . . . . . . . . . . 164\n262 Costs etc. of inquiries about beneficiaries . . . . . . . . . . . . . . . . . . 164\n263 Effect of conversion of land or personal property before commencement\nunder statutory power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164\n264 Businesses carried on before commencement . . . . . . . . . . . . . . 165\nDivision 7 Provisions for maintenance, education and advancement\n265 Accumulations of surplus trust income held before commencement 165\n266 Application of trust capital, and bringing particular amounts into account,\nif capital paid or applied before commencement . . . . . . . . . . . . . 165\n267 Requirement for chief executive to publish prescribed amount for\nfinancial year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166\n268 Conditions imposed before commencement on advances for\nmaintenance etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166\n269 Existing protective trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166\nDivision 8 Provisions for indemnities and protection of trustees and other\npersons\n270 Protection against liability for rents and covenants if accrued liabilities\nsatisfied before commencement . . . . . . . . . . . . . . . . . . . . . . . . . 167\n271 Existing notices of intended distribution of trust property or estate 167\n272 Existing notices calling on claimants and potential claimants to take legal\nproceedings etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168\n273 Existing proceedings for orders in relation to proceedings not taken or\nprosecuted in compliance with notice served before commencement\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169\n274 Remedies for wrongful distribution of trust property . . . . . . . . . . 169\n275 Effect of order made before commencement refusing leave to enforce\nremedy for wrongful distribution of trust property in particular way 169\n276 Expenses reasonably incurred before commencement in administering","sortOrder":1},{"sectionNumber":"retrieval-0003","sectionType":"document_chunk","heading":"Document excerpt 3","content":"Contents\nTrusts Bill 2025\nPage 13\nAuthorised by the Parliamentary Counsel\ntrust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170\n277 Statement in existing instrument about vacancy in trust or removal of\ntrustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170\n278 Power of court to relieve trustee from personal liability for breach of trust\ncommitted before commencement . . . . . . . . . . . . . . . . . . . . . . . 170\n279 Power of court to make beneficiary indemnify for breach of trust\ncommitted before commencement . . . . . . . . . . . . . . . . . . . . . . . 171\n280 Indemnity for acts done under particular court orders . . . . . . . . . 171\nDivision 9 Provisions for remuneration of trustees\n281 Existing proceedings for remuneration of trustees . . . . . . . . . . . 171\n282 Proceedings for remuneration of trustees for whom charges have been\npaid out under repealed Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171\n283 Application of s 161 to amounts charged, or proposed to be charged, for\ncommission or professional charges . . . . . . . . . . . . . . . . . . . . . . 172\nDivision 10 Provisions for court powers\n284 Existing proceedings under particular provisions of repealed Act 172\n285 Powers etc. of trustees appointed by court under repealed Act, s 80\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172\n286 Power to disqualify particular persons from appointment as trustees and\nremove them as trustees of other trusts . . . . . . . . . . . . . . . . . . . 173\n287 Circumstances relating to validity of vesting and other orders made under\nrepealed Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173\n288 Agreements entered into for infants by court-appointed persons 173\n289 Orders authorising dealings etc. in relation to particular property to which\ninfants are beneficially entitled . . . . . . . . . . . . . . . . . . . . . . . . . . 174\n290 Vesting orders made under repealed Act . . . . . . . . . . . . . . . . . . 174\n291 Powers of persons in whose favour vesting order as trustee made under\nrepealed Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175\n292 Conveyance or release by person appointed by court under repealed\nAct, s 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175\n293 Revocation or variation of orders made under repealed Act, s 94 176\n294 Directions made under repealed Act, s 96 . . . . . . . . . . . . . . . . . 176\n295 Application of provisions about proceedings in absence of particular\npersons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176\n296 Application of provisions for orders about costs . . . . . . . . . . . . . 177\n297 Payment into court—orders made before commencement . . . . . 177\n298 Payment into court—money or securities paid before commencement\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177\nDivision 11 Provision for charitable trusts\n\nContents\nTrusts Bill 2025\nPage 14\nAuthorised by the Parliamentary Counsel\n299 Existing proceedings in relation to charitable trusts . . . . . . . . . . 177\nDivision 12 Provision for gifts by particular trustees to charity-like government\nentities or other entities\n300 Application of pt 13 to funds and trusts established before\ncommencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178\nDivision 13 Provisions for particular philanthropic gifts\nSubdivision 1 Preliminary\n301 Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178\nSubdivision 2 Validation of exercise, or purported exercise, of particular powers\n302 Validation provision for exercise, or purported exercise, of particular\npowers during relevant period . . . . . . . . . . . . . . . . . . . . . . . . . . . 179\nSubdivision 3 Application of Act to particular prescribed trusts\n303 Definitions for subdivision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180\n304 Meaning of former prescribed power . . . . . . . . . . . . . . . . . . . . . . 180\n305 Application of Act to particular prescribed trusts . . . . . . . . . . . . . 181\n306 Application of s 305 in relation to particular powers exercised, or\npurportedly exercised, before commencement . . . . . . . . . . . . . . 182\nDivision 14 Provision for particular statutory trustees under repealed Act\n307 Continued application of repealed Act to statutory trustees of settled land\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183\nDivision 15 Other matters\n308 Requirements for particular transfers to local governments to end 183\n309 References to repealed Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184\n310 Transitional regulation-making power . . . . . . . . . . . . . . . . . . . . . 184\nPart 18 Amendment of Acts\nDivision 1 Amendment of this Act\n311 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184\n312 Amendment of long title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185\nDivision 2 Amendment of Aboriginal Land Act 1991\n313 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185\n314 Amendment of pt 21, div 2, hdg (Powers of Supreme Court) . . . 185\n315 Insertion of new s 268A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185\n268A Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . 185\n316 Amendment of s 269 (Jurisdiction of Supreme Court) . . . . . . . . 186\n317 Amendment of sch 1 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . 186\nDivision 3 Amendment of Corrective Services Act 2006\n318 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186\n\nContents\nTrusts Bill 2025\nPage 15\nAuthorised by the Parliamentary Counsel\n319 Amendment of s 311 (Prisoners trust fund) . . . . . . . . . . . . . . . . . 186\n320 Amendment of s 315 (Investment of prisoners trust fund) . . . . . 186\n321 Insertion of new s 319KA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187\n319KA Relationship with Trusts Act 2025 . . . . . . . . . . . . . . . 187\nDivision 4 Amendment of District Court of Queensland Act 1967\n322 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187\n323 Amendment of s 68 (Civil jurisdiction) . . . . . . . . . . . . . . . . . . . . . 187\nDivision 5 Amendment of Funeral Benefit Business Act 1982\n324 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188\n325 Amendment of s 79 (Application of Trusts Act 1973) . . . . . . . . . 188\n326 Replacement of pt 9, hdg (Transitional provisions for Liquor and Gaming\n(Red Tape Reduction) and Other Legislation Amendment Act 2013)\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188\n327 Amendment of s 90 (Definitions for pt 9) . . . . . . . . . . . . . . . . . . . 189\n328 Insertion of new pt 9, div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189\nDivision 2 Transitional provisions for Trusts Act 2025\n97 Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . 189\n98 Application of Trusts Act 2025 to particular payments made\nbefore commencement . . . . . . . . . . . . . . . . . . . . . . . 189\n99 Continued application of repealed Trusts Act 1973 in\nparticular circumstances . . . . . . . . . . . . . . . . . . . . . . 190\nDivision 6 Amendment of Public Trustee Act 1978\n329 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191\n330 Replacement of s 40 (When public trustee being custodian trustee or\nstatutory trustee may act as general trustee) . . . . . . . . . . . . . . . 191\n40 When public trustee as custodian trustee may act as\nmanaging trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191\n40A When public trustee as statutory trustee may act as trustee\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192\n331 Insertion of new pt 10, div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192\nDivision 4 Transitional provisions for Trusts Act 2025\n150 When public trustee as custodian trustee may act as\nmanaging trustee—existing appointment . . . . . . . . . 193\n151 Application of former s 40(3) to particular statutory trustees\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193\nDivision 7 Amendment of River Improvement Trust Act 1940\n332 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193\n333 Insertion of new s 5BA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194\n\nContents\nTrusts Bill 2025\nPage 16\nAuthorised by the Parliamentary Counsel\n5BA Relationship with Trusts Act 2025 . . . . . . . . . . . . . . . 194\n334 Replacement of pt 9, hdg (Transitional provision for Water Legislation\nAmendment Act 2016) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194\n335 Insertion of new pt 9, div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194\nDivision 2 Validation provision for Trusts Act 2025\n25 Relationship with repealed Trusts Act 1973 . . . . . . . 194\nDivision 8 Amendment of Succession Act 1981\n336 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195\n337 Insertion of new ss 49B–49D . . . . . . . . . . . . . . . . . . . . . . . . . . . 195\n49B Power to carry on business . . . . . . . . . . . . . . . . . . . . 195\n49C Power to subscribe to particular funds if carrying on business\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197\n49D Court may approve period for carrying on business . 198\n338 Insertion of new s 53A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198\n53A Protection of personal representatives for calls made after\ntransfer of shares . . . . . . . . . . . . . . . . . . . . . . . . . . . 198\n339 Insertion of new s 61AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199\n61AA Abolition of rule in Allhusen v Whittell . . . . . . . . . . . . 199\nDivision 9 Amendment of Torres Strait Islander Land Act 1991\n340 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201\n341 Amendment of pt 15, div 2, hdg (Powers of Supreme Court) . . . 201\n342 Insertion of new s 173A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201\n173A Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . 201\n343 Amendment of s 174 (Jurisdiction of Supreme Court) . . . . . . . . 202\n344 Amendment of sch 1 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . 202\nPart 19 Other amendments\n345 Legislation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202\nSchedule 1 Dictionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203\nSchedule 2 Other amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209\nAboriginal Land Act 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209\nBuilding Industry Fairness (Security of Payment) Act 2017 . . . . 210\nCharitable Funds Act 1958 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211\nFuneral Benefit Business Act 1982 . . . . . . . . . . . . . . . . . . . . . . . 211\nGuardianship and Administration Act 2000 . . . . . . . . . . . . . . . . . 212\nLand Act 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212\n\nContents\nTrusts Bill 2025\nPage 17\nAuthorised by the Parliamentary Counsel\nLand Valuation Act 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212\nLegal Aid Queensland Act 1997 . . . . . . . . . . . . . . . . . . . . . . . . . 213\nLimitation of Actions Act 1974 . . . . . . . . . . . . . . . . . . . . . . . . . . . 213\nNature Conservation Act 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . 213\nPowers of Attorney Act 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214\nProperty Law Act 1974 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214\nProperty Law Act 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214\nPublic Trustee Act 1978 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215\nRetirement Villages Act 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 215\nSuccession Act 1981 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216\nTorres Strait Islander Land Act 1991 . . . . . . . . . . . . . . . . . . . . . . 216\nTrustee Companies Act 1968 . . . . . . . . . . . . . . . . . . . . . . . . . . . 218\nUnited Grand Lodge of Antient Free and Accepted Masons of\nQueensland Trustees Act 1942 . . . . . . . . . . . . . . . . . . . . . . . . . . 218\n\n2025\nA Bill\nfor\nAn Act to provide for the law relating to trusts, to repeal the\nTrusts Act 1973, and to amend this Act, the Aboriginal Land Act\n1991, the Corrective Services Act 2006, the District Court of\nQueensland Act 1967, the Funeral Benefit Business Act 1982,\nthe Public Trustee Act 1978, the River Improvement Trust Act\n1940, the Succession Act 1981, the Torres Strait Islander Land\nAct 1991 and the legislation mentioned in schedule 2 for\nparticular purposes\n\nPage 20\nAuthorised by the Parliamentary Counsel\n[s 1]\nTrusts Bill 2025\nPart 1 Preliminary\nThe Parliament of Queensland enacts—\nPart 1 Preliminary\nDivision 1 Introduction\n1 Short title\nThis Act may be cited as the Trusts Act 2025.\n2 Commencement\nThis Act commences on a day to be fixed by proclamation.\n3 Application of Act\n(1) This Act applies in relation to a trust whether created before\nor after, or partly before and partly after, the commencement\nof this Act, except to the extent this Act or another Act\nprovides otherwise.\nNote—\nFor an example of an Act providing otherwise, see the Land Act 1994,\nsection 90.\n(2) Also, this Act applies despite a contrary intention in any trust\ninstrument, except to the extent this Act provides otherwise.\n(3) This Act does not prevent a settlor conferring on a trustee any\npowers additional to or greater than those conferred under this\nAct.\n(4) Any additional or greater power conferred on a trustee by a\nsettlor has effect and is exercisable in the same way, and with\nthe same consequences, as a power conferred under this Act.\n(5) Subsection (4) applies subject to an express contrary intention\nin the trust instrument.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nPage 21\nAuthorised by the Parliamentary Counsel\n[s 4]\nTrusts Bill 2025\nPart 1 Preliminary\n(6) The powers conferred on a trustee under this Act are in\naddition to the powers conferred on the trustee under any\nother Act.\n(7) In this section—\ntrustee includes a person exercising the powers of a trustee\nunder this Act.\n4 Act binds all persons\nThis Act binds all persons, including the State and, to the\nextent the legislative power of the Parliament permits, the\nCommonwealth and the other States.\nDivision 2 Interpretation\n5 Definitions\nThe dictionary in schedule 1 defines particular words used in\nthis Act.\n6 Meaning of trust\nTrust includes—\n(a) an implied, resulting, bare or constructive trust; and\n(b) the duties incidental to the office of a personal\nrepresentative.\n7 Meaning of trustee and statutory trustee\n(1) Trustee includes—\n(a) a trustee corporation; and\n(b) another corporation in which property subject to a trust\nis vested; and\n(c) a personal representative; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nPage 22\nAuthorised by the Parliamentary Counsel\n[s 8]\nTrusts Bill 2025\nPart 1 Preliminary\n(d) a statutory trustee.\n(2) A person, other than a person under a legal incapacity, is a\nstatutory trustee in relation to trust property comprising land\nif—\n(a) the person is beneficially entitled to possession of the\nland, or to the rents and profits of the land; and\n(b) apart from this section, there is no trustee of the land.\nNote—\nSee part 14 in relation to statutory trustees.\n8 Meaning of trust instrument\n(1) The trust instrument, in relation to a trust, is any instrument\ncreating the trust, as modified by all validly executed\namendments.\n(2) In this section—\ninstrument includes an Act.\n9 Meaning of trust property and references to trust\nproperty\n(1) Trust property includes—\n(a) property settled on any trust; and\n(b) property subject to any implied, resulting, bare or\nconstructive trust; and\n(c) property subject to any trust or direction for sale,\nhowever arising; and\n(d) land vested in a person for an estate for the person’s own\nlife or any other life, or for a term of years determinable\non life not being a mere lease at rent, or for any greater\nestate not being a fee simple absolute; and\n(e) land in relation to which a person has, under a will, a\npersonal licence to reside for the person’s own life or\nany other life, or for any lesser period; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30","sortOrder":2},{"sectionNumber":"retrieval-0004","sectionType":"document_chunk","heading":"Document excerpt 4","content":"Page 23\nAuthorised by the Parliamentary Counsel\n[s 10]\nTrusts Bill 2025\nPart 1 Preliminary\n(f) the estate of a deceased person.\n(2) A reference in this Act to trust property includes a reference to\na part of the trust property.\n10 Meaning of capacity and impaired capacity\n(1) A person has capacity for a matter only if the person is\ncapable of—\n(a) understanding the nature and effect of decisions about\nthe matter; and\n(b) freely and voluntarily making decisions about the\nmatter; and\n(c) communicating the decisions in some way.\n(2) A person has impaired capacity for a matter if the person does\nnot have capacity for the matter.\nExample of a matter for this section—\nadministering a trust\n11 Meaning of charitable\n(1) The established rules of law relating to what is charitable, as\nin force immediately before the commencement, continue to\napply.\nExamples of categories of charitable purposes—\n• the relief of poverty\n• the advancement of education\n• the advancement of religion\n(2) Despite any rule of law to the contrary, it is declared that it is\nand always has been charitable to provide, or to help in\nproviding, facilities for recreation or other leisure time\nactivity, if the facilities are provided in the interests of social\nwelfare.\n(3) For subsection (2), facilities are provided in the interests of\nsocial welfare only if—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 24\nAuthorised by the Parliamentary Counsel\n[s 12]\nTrusts Bill 2025\nPart 2 Restrictions on appointment of trustees and related matters\n(a) the facilities are provided with the object of improving\nthe conditions of life for the persons for whom the\nfacilities are primarily intended; and\n(b) either—\n(i) those persons have need of the facilities because of\ntheir youth, age, infirmity or disability, poverty or\nsocial and economic circumstances; or\n(ii) the facilities are to be available to the members of\nthe public at large or to a substantial section of the\npublic at large.\n(4) Nothing in this section limits the requirement that, in order to\nbe charitable, a gift, trust or institution must be for the public\nbenefit.\n12 References to security when lending or investing trust\nfunds\nIn this Act, a reference to a trustee lending or investing trust\nfunds on the security of property includes a reference to a\ntrustee lending or investing trust funds on a new security or on\nthe transfer of an existing security.\nPart 2 Restrictions on appointment of\ntrustees and related matters\n13 Persons who can not be appointed as trustees\n(1) The following persons can not be appointed as a trustee—\n(a) a child;\n(b) an individual who is an insolvent under administration;\n(c) a corporation that is a Chapter 5 body corporate;\n(d) a person who is disqualified from being appointed as a\ntrustee by an order made under section 168.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 25\nAuthorised by the Parliamentary Counsel\n[s 14]\nTrusts Bill 2025\nPart 2 Restrictions on appointment of trustees and related matters\n(2) The purported appointment of a person mentioned in\nsubsection (1)(a), (b), (c) or (d) is of no effect.\n(3) Subsections (1)(b) and (c) and (2) do not affect the\nappointment of—\n(a) an individual who becomes an insolvent under\nadministration after the individual’s appointment as\ntrustee has taken effect; or\n(b) a corporation that becomes a Chapter 5 body corporate\nafter the corporation’s appointment as trustee has taken\neffect.\nNote—\nSee, however—\n(a) sections 20, 23 and 29 in relation to the replacement and removal\nof a trustee who becomes an insolvent under administration; and\n(b) sections 20 and 29 in relation to the replacement and removal of a\ntrustee that becomes a Chapter 5 body corporate.\n(4) This section does not apply in relation to the appointment of a\npersonal representative.\n(5) Also, to remove any doubt, it is declared that this section does\nnot limit the court’s power to declare that a person mentioned\nin subsection (1)(a), (b), (c) or (d) holds property as a trustee.\n14 Limit on number of trustees of particular trusts\n(1) This section applies to a trust other than—\n(a) a charitable trust; or\n(b) a trust that is, or is created for the purpose of becoming,\na self managed superannuation fund within the meaning\nof the Superannuation Industry (Supervision) Act 1993\n(Cwlth).\n(2) The trust may not have more than 4 trustees.\n(3) If more than 4 persons are named as trustees under the trust\ninstrument—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 26\nAuthorised by the Parliamentary Counsel\n[s 15]\nTrusts Bill 2025\nPart 2 Restrictions on appointment of trustees and related matters\n(a) the first 4 persons named, who are able and willing to\nact as trustees and whose appointments are otherwise\nable to take effect, are the trustees; and\nExample of a person who is not able to act as a trustee—\na person who has impaired capacity for administering the trust\nExample of a person whose appointment as a trustee is not\notherwise able to take effect—\na person who can not, under section 13, be appointed as a trustee\n(b) the appointment of the other persons is of no effect.\n(4) A custodian trustee is not to be counted for the purpose of any\nlimitation on the number of trustees the trust may have.\nNote—\nSee part 4 in relation to custodian trustees.\n(5) This section applies subject to section 15.\n15 Court approval of more than 4 trustees for particular\ntrusts\n(1) This section applies in relation to a trust other than a trust\nmentioned in section 14(1)(a) or (b).\n(2) The court may, on application, make an order approving the\nappointment of more than 4 trustees of the trust if satisfied it\nis appropriate to do so in the particular circumstances of the\ncase.\nNote—\nSee section 163 in relation to the persons who may apply to the court\nfor particular orders.\n(3) The number of trustees approved by an order made under\nsubsection (2) is the approved number.\nExample—\nIf the court approves the appointment of 6 trustees, the approved\nnumber is 6.\n(4) If the court makes an order under subsection (2) in relation to\na trust, section 14 applies to the trust as if—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 27\nAuthorised by the Parliamentary Counsel\n[s 16]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(a) the reference in section 14(2) to 4 trustees were a\nreference to the approved number of trustees; and\n(b) a reference in section 14(3) to 4 persons were a\nreference to the approved number of persons.\n16 Local government trustees may act in administration of\ntrusts\n(1) If a local government is appointed as trustee of a trust, the\nlocal government may act in the administration of the trust for\nthe purpose of, and according to, the trust, even if the purpose\nis not a function of local government.\n(2) Subsection (1) applies whether or not the local government is\nan original trustee of the trust.\n(3) However, if the local government is not an original trustee of\nthe trust, subsection (1) applies subject to a contrary intention\nin the trust instrument.\nPart 3 Appointment, discharge and\nremoval of trustees and\ndevolution of trusts\nDivision 1 Preliminary\n17 Application of part\nThis part applies in relation to a trustee who is the personal\nrepresentative of the estate of a deceased person only if, and to\nthe extent, the personal representative—\n(a) has completed the administration of all, or a part, of the\nestate; and\n(b) holds the estate, or a part of the estate, in the capacity of\ntrustee only.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n\nPage 28\nAuthorised by the Parliamentary Counsel\n[s 18]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n18 When appointors are not able and willing to act\n(1) For this part, if there is 1 appointor for a trust, the appointor is\nnot able and willing to act as appointor for the trust if—\n(a) the appointor does not exercise the power of\nappointment within a reasonable period; or\n(b) the appointor is otherwise not able and willing to act as\nappointor.\n(2) For this part, if there are 2 or more appointors for a trust, the\nappointors are not able and willing to act as appointors for the\ntrust if—\n(a) the appointors can not, within a reasonable period—\n(i) if the trust instrument provides for the appointors\nto exercise the power of appointment by\nmajority—reach a majority decision on the\nappointment; or\n(ii) otherwise—reach a unanimous decision on the\nappointment; or\n(b) the appointors are otherwise not able and willing to act\nas appointors.\nDivision 2 Appointment of trustees\n19 Application of division\n(1) If there is an appointor for a trust, the provisions of this\ndivision relating to appointors apply, whether the appointment\nof a trustee is to be made in a circumstance mentioned in this\ndivision or in the trust instrument.\n(2) However, if an appointor is authorised under this division to\nappoint a trustee in a circumstance that is also mentioned in\nthe trust instrument, an appointment made under this division\nin that circumstance is subject to the terms applying under the\ntrust instrument to an appointment in that circumstance.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 29\nAuthorised by the Parliamentary Counsel\n[s 20]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(3) If a will names a person as trustee of a trust created by the will\nand the person is dead, the provisions of this division that\napply if a trustee is dead apply—\n(a) whether the person is named as a sole trustee or\notherwise of the trust; and\n(b) whether the death of the person happened before or after\nthe death of the testator.\n20 Appointment of trustees—replacement of trustee in\nparticular circumstances\n(1) This section applies if a trustee of a trust (a relevant\ntrustee)—\n(a) is dead; or\n(b) declares, by instrument, that the trustee wishes to be\ndischarged from all or part of the trusts reposed in the\ntrustee; or\n(c) refuses to act as trustee; or\n(d) is unfit to act as trustee; or\n(e) is incapable of acting as trustee, including, for example,\nbecause of having impaired capacity for administering\nthe trust; or\n(f) becomes an insolvent under administration; or\n(g) is disqualified from managing corporations under the\nCorporations Act, part 2D.6 and either—\n(i) does not have permission under section 206GAB\nor 206G of that Act to manage all corporations; or\n(ii) has permission under section 206GAB or 206G of\nthat Act to manage all corporations, but the\npermission is subject to exceptions or conditions;\nor\n(h) is a corporation that—\n(i) stops carrying on business; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 30\nAuthorised by the Parliamentary Counsel\n[s 21]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(ii) becomes a Chapter 5 body corporate; or\n(iii) is deregistered or otherwise ceases to exist; or\n(i) is removed under the trust instrument.\n(2) For subsection (1), it does not matter whether the relevant\ntrustee is an original trustee of the trust or was appointed by\nthe court or otherwise.\n(3) The following persons may, by instrument, appoint 1 or more\npersons as trustees to replace the relevant trustee—\n(a) if there is an appointor for the trust—the appointor;\n(b) if there is no appointor for the trust, or no appointor who\nis able and willing to act as an appointor—the\ncontinuing trustee of the trust or, if there is more than 1\ncontinuing trustee, the continuing trustees.\nNotes—\n1 See section 14 in relation to the limit applying to the number of\ntrustees of particular trusts.\n2 See also section 166 in relation to the court’s power to appoint and\nremove trustees.\n(4) Subject to a contrary intention in the trust instrument, an\nappointor for the trust may appoint themself as a trustee under\nsubsection (3)(a).\n(5) In this section—\ncontinuing trustee includes a relevant trustee mentioned in\nsubsection (1)(b) or (c) who is willing to act under subsection\n(3)(b).\n21 Appointment of trustees—replacement of last continuing\ntrustee who is dead\n(1) This section applies if all of the following apply—\n(a) the last continuing trustee of a trust is dead;\n(b) there is no appointor for the trust, or no appointor who is\nable and willing to act under section 20 to appoint a\ntrustee to replace the last continuing trustee;\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 31\nAuthorised by the Parliamentary Counsel\n[s 21]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(c) if the trust instrument includes a mechanism, other than\nthe appointment of an appointor, for appointing a trustee\nto replace the last continuing trustee—an appointment\nof a trustee under the mechanism has not taken effect\nwithin a reasonable period after the death of the last\ncontinuing trustee.\n(2) For subsection (1), it does not matter whether the last\ncontinuing trustee was an original trustee of the trust or was\nappointed by the court or otherwise.\n(3) The personal representative of the last continuing trustee may,\nby instrument, appoint 1 or more persons as trustees to replace\nthe last continuing trustee.\nNotes—\n1 See section 14 in relation to the limit applying to the number of\ntrustees of particular trusts.\n2 See also section 166 in relation to the court’s power to appoint and\nremove trustees.\n(4) The personal representative of the last continuing trustee—\n(a) is taken to have always had the power of appointment\nconferred under subsection (3); and\n(b) if the personal representative is the executor, whether\noriginal or by representation, of the last continuing\ntrustee’s will—may exercise the power of appointment\nconferred under subsection (3) without the agreement of\nany executor named in the trustee’s will who has not\nproved the trustee’s will.\n(5) Subject to a contrary intention in the trust instrument, the\npersonal representative of the last continuing trustee may\nappoint themself as a trustee under subsection (3).\n(6) If there is more than 1 personal representative of the last\ncontinuing trustee, the personal representatives must exercise\nthe power of appointment under subsection (3) jointly.\n(7) In this section—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 32\nAuthorised by the Parliamentary Counsel\n[s 22]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\npersonal representative, of the last continuing trustee of a\ntrust, does not include an executor named in the trustee’s will\nwho has not proved the trustee’s will.\n22 Appointment of trustees—replacement of last continuing\ntrustee with impaired capacity\n(1) This section applies if all of the following apply—\n(a) the last continuing trustee of a trust is incapable of\nacting as trustee because the trustee has impaired\ncapacity for administering the trust;\n(b) there is no appointor for the trust, or no appointor who is\nable and willing to act under section 20 to appoint a\ntrustee to replace the last continuing trustee;\n(c) if the trust instrument includes a mechanism, other than\nthe appointment of an appointor, for appointing a trustee\nto replace the last continuing trustee—an appointment\nof a trustee under the mechanism has not taken effect\nwithin a reasonable period after the later of the\nfollowing to happen to the last continuing trustee—\n(i) becoming the last continuing trustee;\n(ii) becoming a person with impaired capacity for\nadministering the trust;\n(d) an administrator or attorney for the last continuing\ntrustee is authorised, under their appointment as\nadministrator or attorney, to exercise power for all\nfinancial matters for the trustee.\n(2) For subsection (1), it does not matter whether the last\ncontinuing trustee is an original trustee of the trust or was\nappointed by the court or otherwise.\n(3) The administrator or attorney may, by instrument, appoint 1 or\nmore persons as trustees to replace the last continuing trustee.\nNotes—\n1 See section 14 in relation to the limit applying to the number of\ntrustees of particular trusts.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33","sortOrder":3},{"sectionNumber":"retrieval-0005","sectionType":"document_chunk","heading":"Document excerpt 5","content":"Page 33\nAuthorised by the Parliamentary Counsel\n[s 23]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n2 See also section 166 in relation to the court’s power to appoint and\nremove trustees.\n(4) The administrator or attorney may appoint themself as a\ntrustee under subsection (3).\n(5) If there is more than 1 administrator or more than 1 attorney\nfor the last continuing trustee, the administrators or attorneys\nmust exercise the power of appointment under subsection (3)\njointly.\n(6) To remove any doubt, it is declared that—\n(a) the exercise of the power of appointment under\nsubsection (3) is not made in the capacity of\nadministrator or attorney for the last continuing trustee;\nand\n(b) neither the Guardianship and Administration Act 2000\nnor the Powers of Attorney Act 1998 applies in relation\nto the exercise of the power of appointment.\n(7) This section applies subject to a contrary intention in—\n(a) the trust instrument; or\n(b) the order or instrument by which the administrator or\nattorney is appointed.\n23 Appointment of trustees—replacement of last continuing\ntrustee who is insolvent under administration\n(1) This section applies if all of the following apply—\n(a) the last continuing trustee of a trust is an insolvent under\nadministration;\n(b) there is no appointor for the trust, or no appointor who is\nable and willing to act under section 20 to appoint a\ntrustee to replace the last continuing trustee;\n(c) if the trust instrument includes a mechanism, other than\nthe appointment of an appointor, for appointing a trustee\nto replace the last continuing trustee—an appointment\nof a trustee under the mechanism has not taken effect\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 34\nAuthorised by the Parliamentary Counsel\n[s 24]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\nwithin a reasonable period after the later of the\nfollowing to happen to the last continuing trustee—\n(i) becoming the last continuing trustee;\n(ii) becoming an insolvent under administration.\n(2) For subsection (1), it does not matter whether the last\ncontinuing trustee is an original trustee of the trust or was\nappointed by the court or otherwise.\n(3) Subject to a contrary intention in the trust instrument, the last\ncontinuing trustee may, by instrument, appoint 1 or more\npersons as trustees to replace themself.\nNotes—\n1 See section 14 in relation to the limit applying to the number of\ntrustees of particular trusts.\n2 See also section 166 in relation to the court’s power to appoint and\nremove trustees.\n(4) The power conferred under subsection (3) is a personal right\nonly of the last continuing trustee.\n24 Appointment of trustees—additional trustees\n(1) This section applies in relation to a trust if—\n(a) the number of trustees of the trust is less than the\nnumber of trustees permitted for the trust under section\n14, including that section as applied by section 15(4); or\n(b) section 14 does not apply to the trust.\n(2) The following persons may, by instrument, appoint 1 or more\npersons as additional trustees of the trust—\n(a) if there is an appointor for the trust—the appointor;\n(b) if there is no appointor for the trust, or no appointor who\nis able and willing to act as an appointor—the trustee of\nthe trust or, if there is more than 1 trustee, the trustees.\nNotes—\n1 See section 14 in relation to the limit applying to the number of\ntrustees of particular trusts.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 35\nAuthorised by the Parliamentary Counsel\n[s 25]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n2 See also section 166 in relation to the court’s power to appoint\nadditional trustees.\n(3) However, the persons mentioned in subsection (2) are not\nrequired to exercise the power conferred under that subsection\nunless the appointment of 1 or more additional trustees is\nrequired under the trust instrument or an Act.\n(4) Subject to a contrary intention in the trust instrument, an\nappointor for the trust may appoint themself as an additional\ntrustee under subsection (2)(a).\n25 Appointment of trustees—separate trustees of separate\ntrust property\n(1) This section applies if, under a trust, a part of the trust\nproperty (the separate trust property) is held on a trust\ndistinct from the trust relating to any other part of the trust\nproperty.\n(2) If a new trustee may be appointed under this division—\n(a) 1 or more separate trustees may be appointed of the\nseparate trust property, whether or not a new trustee is,\nor is to be, appointed of any other part of the trust\nproperty; and\n(b) a continuing trustee may be appointed or continue as a\ntrustee of the separate trust property; and\n(c) if only 1 trustee of the trust property was originally\nappointed—1 trustee may be appointed of the separate\ntrust property.\n26 Powers etc. of trustees appointed under division\n(1) A person appointed under this division as a trustee of trust\nproperty has all the powers, authorities and discretions of, and\nmay in all matters act as, a person who had originally been\nappointed as a trustee of the trust property under the trust\ninstrument.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 36\nAuthorised by the Parliamentary Counsel\n[s 27]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(2) Subsection (1) applies in relation to the trustee both before\nand after the trust property is vested in the trustee.\nDivision 3 Discharge and removal of trustees\n27 When minimum trustee requirements are satisfied\nFor this division, the minimum trustee requirements for a\ntrust are satisfied if the trust has—\n(a) at least 1 trustee that is a corporation; or\nExamples of a corporation—\n• the public trustee\n• a licensed trustee company\n• a company registered under the Corporations Act\n• a local government\nNote—\nSee section 16 in relation to the power of a local government to\nact in the administration of a trust.\n(b) at least 2 trustees who are individuals; or\n(c) if only 1 trustee was originally appointed or the trust\ninstrument allows the trust to have only 1 trustee who is\nan individual—1 trustee who is an individual.\n28 Discharge of trustee on appointment of new trustee\n(1) This section applies if—\n(a) a new trustee is appointed under division 2 to replace a\ntrustee (the replaced trustee); and\n(b) on the appointment of the new trustee, the minimum\ntrustee requirements for the trust are satisfied.\n(2) On the appointment of the new trustee, the replaced trustee is\ndischarged from the trust.\n(3) However, if the replaced trustee has declared, as mentioned in\nsection 20(1)(b), that the trustee wishes to be discharged from\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 37\nAuthorised by the Parliamentary Counsel\n[s 29]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\nonly part of the trusts reposed in the trustee and is replaced\nunder section 20 in relation to that part only, the trustee is\ndischarged from that part only.\n29 Removal and discharge of trustee without appointment of\nnew trustee\n(1) This section applies in relation to a relevant trustee mentioned\nin section 20(1)(c), (d), (e), (f), (g) or (h).\n(2) For subsection (1), it does not matter whether the relevant\ntrustee is an original trustee of the trust or was appointed by\nthe court or otherwise.\n(3) The following persons may, by instrument, remove the\nrelevant trustee without appointing a new trustee to replace\nthe relevant trustee—\n(a) if there is an appointor for the trust—the appointor;\n(b) if there is no appointor for the trust, or no appointor who\nis able and willing to act as an appointor—the\ncontinuing trustee of the trust or, if there is more than 1\ncontinuing trustee, the continuing trustees.\n(4) However, subsection (3) applies only if, on the removal of the\nrelevant trustee, the minimum trustee requirements for the\ntrust will be satisfied.\n(5) On the removal of the relevant trustee under this section, the\nrelevant trustee is discharged from the trust.\n30 Discharge of trustee who wishes to be discharged\n(1) This section applies if—\n(a) a trustee declares, by instrument, that the trustee wishes\nto be discharged from all, or part (the relevant part), of\nthe trusts reposed in the trustee; and\n(b) on the discharge, the minimum trustee requirements will\nbe satisfied for the trust or relevant part; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 38\nAuthorised by the Parliamentary Counsel\n[s 31]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(c) the trustee’s co-trustees and, if there is an appointor for\nthe trust, the appointor, by instrument, agree to—\n(i) discharge the trustee from the trusts or relevant\npart; and\n(ii) vest the trust property in the co-trustees alone.\n(2) Subject to subsection (3), the trustee is discharged from the\ntrusts or relevant part.\n(3) The discharge of the trustee takes effect—\n(a) to the extent it is necessary, in order to vest the trust\nproperty in the co-trustees alone, for a transfer of the\ntrust property to be notified, registered or recorded\nunder the requirements of another Act or of a law of\nanother State or the Commonwealth—on the\nnotification, registration or recording of the transfer; or\n(b) if, or to the extent, paragraph (a) does not\napply—according to the terms of the instrument\nmentioned in subsection (1)(c).\n(4) If the trustee has declared, as mentioned in subsection (1)(a),\nthat the trustee wishes to be discharged from only the relevant\npart of the trusts, this section applies as if a reference in\nsubsections (1)(c)(ii) and (3)(a) to the trust property were a\nreference to the trust property held on trust under the relevant\npart.\n(5) To remove any doubt, it is declared that it is not necessary for\na new trustee to be appointed to replace the trustee who is\ndischarged.\nDivision 4 Notification of former delegate if\ntrustee is replaced, removed or\ndischarged\n31 Particular persons to notify person who was trustee’s\ndelegate\n(1) This section applies if—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 39\nAuthorised by the Parliamentary Counsel\n[s 32]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(a) a trustee is—\n(i) replaced under division 2; or\n(ii) removed under section 29 or under the trust\ninstrument, without being replaced; or\n(iii) discharged under section 30; and\n(b) when the trustee is replaced, removed or discharged, the\nrelevant person has notice that the trustee had, under\nsection 95, delegated a matter in relation to the trust.\n(2) For subsection (1)(b), it does not matter whether the relevant\nperson has notice of the delegation of the matter because the\ntrustee gave notice to the relevant person under section 99, or\notherwise.\n(3) The relevant person must give the person to whom the\ndelegation was made written notice that the trustee has been\nreplaced, removed or discharged, as the case may be.\n(4) In this section—\nrelevant person means—\n(a) in relation to a trustee who is replaced or removed as\nmentioned in subsection (1)(a)(i) or (ii)—the person\nreplacing or removing the trustee; or\n(b) in relation to a trustee who is discharged as mentioned in\nsubsection (1)(a)(iii)—any person whose agreement to\nthe discharge is required under section 30.\nDivision 5 Vesting of trust property on\nappointment, removal or discharge\nof trustees\n32 Application of division\n(1) This division applies if, by instrument (an instrument of\nchange)—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 40\nAuthorised by the Parliamentary Counsel\n[s 33]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(a) a new trustee is appointed, whether under division 2 or\nunder the trust instrument and whether to replace a\ntrustee or to be an additional trustee; or\n(b) a trustee is—\n(i) removed under section 29; or\n(ii) discharged under section 30.\n(2) However, this division does not apply in relation to a new\ntrustee if the new trustee is appointed to replace the last\ncontinuing trustee of a trust who is dead.\nNote—\nSee division 7 in relation to the vesting of trust property on the death of\nthe last continuing trustee of a trust.\n33 Definitions for division\nIn this division—\ninstrument of change see section 32(1).\npost-change trustee, in relation to an instrument of change,\nmeans a person who, on the appointment of a new trustee, or\nthe removal or discharge of a trustee, under the instrument,\nbecomes or continues as a trustee of the trust to which the\ninstrument relates.\npre-change trustee, in relation to an instrument of change,\nmeans a person who, immediately before the appointment of a\nnew trustee, or the removal or discharge of a trustee, takes\neffect under the instrument, is a trustee of the trust to which\nthe instrument relates.\n34 Vesting of trust property\n(1) On the appointment of the new trustee, or the removal or\ndischarge of the trustee, under the instrument of change, the\ninstrument of change—\n(a) divests the trust property from the pre-change trustees;\nand\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 41\nAuthorised by the Parliamentary Counsel\n[s 35]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(b) without any conveyance, transfer or assignment, vests\nthe trust property in—\n(i) the post-change trustee; or\n(ii) if there is more than 1 post-change trustee—the\npost-change trustees, as joint tenants.\n(2) However, to the extent the divesting and vesting of the trust\nproperty have effect only if notified, registered or recorded\nunder the requirements of another Act or of a law of another\nState or the Commonwealth—\n(a) the divesting and vesting of the trust property are subject\nto the requirements of the other Act or law; and\n(b) the instrument of change—\n(i) vests in the post-change trustee a right to call for a\ntransfer of the trust property; or\n(ii) if there is more than 1 post-change trustee—vests\nin the post-change trustees jointly a right to call for\na transfer of the trust property.\n35 Transfer etc. of trust property\n(1) Each pre-change trustee and post-change trustee must do all\nthings necessary to assist in the notification, registration or\nrecording of the divesting and vesting of the trust property\nunder a requirement mentioned in section 34(2).\n(2) The instrument of change is taken to be a conveyance of the\ntrust property from the pre-change trustees to—\n(a) the post-change trustee; or\n(b) if there is more than 1 post-change trustee—the\npost-change trustees, as joint tenants.\n(3) However, the instrument of change does not have effect as a\nbreach of covenant or condition, or give rise to the forfeiture,\nof any lease or agreement for lease or other property.\n(4) If the consent of a person is needed to the conveyance,\ntransfer or assignment of the trust property—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 42\nAuthorised by the Parliamentary Counsel\n[s 36]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(a) the vesting of the property under this division is subject\nto the consent; but\n(b) the consent may be obtained after the execution of the\ninstrument of change by the post-change trustee or, if\nthere is more than 1 post-change trustee, the\npost-change trustees.\nDivision 6 Devolution of trusts on death of\ntrustee\n36 Exercise of trust powers etc. by surviving trustees\n(1) This section applies if—\n(a) a power is given to, or a trust is imposed on, 2 or more\ntrustees jointly; and\n(b) 1 or more of the trustees dies.\n(2) The surviving trustee or, if there is more than 1 surviving\ntrustee, the surviving trustees may exercise the power or\nperform the trust, as the case may be.\nDivision 7 Vesting of trust property and\ndevolution of trusts—death of last\ncontinuing trustee\n37 Application of division\nThis division applies if the last continuing trustee of a trust\ndies.\n38 Vesting of trust property in public trustee\n(1) On the death of the last continuing trustee, the trust property\ndevolves to and vests in the public trustee in the same way,\nand subject to the same provisions, as trust property vests in a\npost-change trustee under division 5.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27","sortOrder":4},{"sectionNumber":"retrieval-0006","sectionType":"document_chunk","heading":"Document excerpt 6","content":"Page 43\nAuthorised by the Parliamentary Counsel\n[s 39]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(2) However, it is not necessary for the public trustee to notify,\nregister or record the vesting of the trust property under\nsection 35, as applied by subsection (1), if—\n(a) the public trustee does not act in relation to the trust; or\n(b) the only action taken by the public trustee is the\nappointment of a new trustee.\n(3) The trust property remains vested in the public trustee until it\nis divested from the public trustee under section 40 or 41.\n39 Powers etc. of public trustee\n(1) While the trust property is vested in the public trustee under\nsection 38, the public trustee has all the powers, authorities\nand discretions of, and may in all matters act as, a person who\nhad originally been appointed as a trustee of the trust property\nunder the trust instrument.\n(2) However, unless the court, in special circumstances, otherwise\ndirects, the public trustee is not required to exercise any of the\npowers, authorities or discretions or act in the administration\nof the trust.\n(3) This section does not limit any power of the public trustee\nunder the Public Trustee Act 1978, section 61 or 62.\n40 Vesting of trust property in new trustee\n(1) This section applies if—\n(a) a new trustee is appointed to replace the last continuing\ntrustee; and\n(b) for an appointment made other than by the public\ntrustee—the new trustee gives the public trustee written\nnotice of the appointment.\n(2) The trust property—\n(a) is divested from the public trustee; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 44\nAuthorised by the Parliamentary Counsel\n[s 41]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n(b) devolves to and vests in the new trustee in the same way,\nand subject to the same provisions, as trust property\nvests in a post-change trustee under division 5.\n41 Vesting of trust property in holder of grant\n(1) This section applies if—\n(a) a new trustee has not been appointed to replace the last\ncontinuing trustee; and\n(b) a grant of probate of the will, or letters of administration\nof the estate, of the last continuing trustee is made to a\nperson, other than the public trustee; and\n(c) the holder of the grant gives the public trustee written\nnotice of—\n(i) the making of the grant; and\n(ii) the holder’s intention to assume the trust of the\ntrust property.\n(2) The trust property—\n(a) is divested from the public trustee; and\n(b) devolves to and vests in the holder of the grant in the\nsame way, and subject to the same provisions, as trust\nproperty vests in a post-change trustee under division 5.\n42 Powers etc. of holder of grant\nIf the trust property vests in the holder of a grant under section\n41, the holder—\n(a) is taken to be a person appointed as a new trustee by an\nappointor for the trust; and\n(b) has all the powers, authorities and discretions of, and\nmay in all matters act as, a person who had originally\nbeen appointed as a trustee of the trust property under\nthe trust instrument.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 45\nAuthorised by the Parliamentary Counsel\n[s 43]\nTrusts Bill 2025\nPart 3 Appointment, discharge and removal of trustees and devolution of trusts\n43 Liability of public trustee\n(1) This section applies if, before the trust property is divested\nfrom the public trustee under section 40 or 41, the public\ntrustee—\n(a) is liable for any action taken by the public trustee in\nrelation to the trust; and\n(b) is entitled to be indemnified out of the trust property for\nthe liability.\n(2) On the divesting of the trust property from the public trustee\nunder section 40 or 41—\n(a) the public trustee’s liability ends; and\n(b) a person who would, apart from paragraph (a), have had\na remedy against the public trustee is taken to have the\nsame remedy against the person in whom the trust\nproperty vests under section 40 or 41.\nDivision 8 Disclaimer of trusts of wills and\nrelated matters\n44 Disclaimer of trust of will on renunciation of probate or\nfailure to apply\n(1) This section applies if—\n(a) a person is appointed as both executor and trustee of a\nwill; and\n(b) the person—\n(i) renounces probate of the will; or\n(ii) fails to apply for probate of the will after being\nproperly cited or summoned to apply.\n(2) The person’s renunciation or failure is taken to be a disclaimer\nby the person of the trust of the will.\n(3) To remove any doubt, it is declared that subsection (2) does\nnot affect any express trust established under the will.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 46\nAuthorised by the Parliamentary Counsel\n[s 45]\nTrusts Bill 2025\nPart 4 Custodian trustees\n45 When grantee under letters of administration is taken to\nbe trustee of will\n(1) This section applies if—\n(a) a person is appointed as both executor and trustee of a\nwill; and\n(b) the person—\n(i) renounces probate of the will; or\n(ii) fails to apply for probate of the will after being\nproperly cited or summoned to apply; or\n(iii) dies before probate of the will is granted to the\nperson; and\n(c) letters of administration with the will are granted to\nanother person (the grantee).\n(2) The grantee is taken to have been appointed trustee of the will\ninstead of the person.\nPart 4 Custodian trustees\n46 Meaning of managing trustee\nIf a custodian trustee of trust property is appointed, each\ntrustee of the trust, other than the custodian trustee, is a\nmanaging trustee of the trust.\n47 Appointment of custodian trustee\n(1) A corporation may be appointed, in a way provided under\nsubsection (2), as the custodian trustee of trust property.\n(2) The appointment may be made by—\n(a) the trust instrument; or\n(b) if there is an appointor for the trust—the appointor, by\ninstrument; or\n(c) the trustees of the trust, by instrument; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 47\nAuthorised by the Parliamentary Counsel\n[s 48]\nTrusts Bill 2025\nPart 4 Custodian trustees\n(d) the court, by order.\n(3) Subsection (2)(b) and (c) applies subject to a contrary\nintention in the trust instrument.\n48 Vesting of trust property in custodian trustee\n(1) On the appointment of a custodian trustee of trust property,\nthe trust property vests in the custodian trustee as if the\ncustodian trustee were the sole trustee.\n(2) The instrument of appointment of a custodian trustee—\n(a) is taken to be a conveyance of the trust property from the\nmanaging trustees to the custodian trustee; but\n(b) does not have effect as a breach of covenant or\ncondition, or give rise to the forfeiture, of any lease or\nagreement for lease or other property.\n(3) Section 34(2) applies to the divesting and vesting of the trust\nproperty under this section as if—\n(a) the reference in section 34(2)(b) to the instrument of\nchange were a reference to the instrument of\nappointment of the custodian trustee; and\n(b) the reference in section 34(2)(b)(i) to the post-change\ntrustee were a reference to the custodian trustee.\n(4) The court may, on application, make vesting orders to give\neffect to subsection (1).\nNote—\nSee section 163 in relation to the persons who may apply to the court\nfor particular orders.\n(5) Subsection (1) applies subject to an express contrary intention\nin the trust instrument.\n(6) In this section—\ninstrument of appointment, of a custodian trustee, means the\ntrust instrument, other instrument or court order by which the\ncustodian trustee is appointed.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 48\nAuthorised by the Parliamentary Counsel\n[s 49]\nTrusts Bill 2025\nPart 4 Custodian trustees\n49 Trust powers, authorities and discretions of managing\ntrustees not affected\n(1) This section applies if trust property vests in a custodian\ntrustee under section 48.\n(2) The exercise of all powers, authorities and discretions\nexercisable by trustees under the trust, including the\nmanagement of the trust property, remains vested in the\nmanaging trustees of the trust as fully and effectively as if\nthere were no custodian trustee.\n(3) Without limiting subsection (2), the custodian trustee does not\nhave the power to appoint a new trustee of the trust.\nNote—\nSee, however, section 163(3) in relation to a custodian trustee’s power\nto apply to the court for an order appointing a new trustee of the trust.\n(4) This section applies subject to an express contrary intention in\nthe trust instrument.\n50 Function of custodian trustee\n(1) A custodian trustee’s function is to do the following, as the\nmanaging trustees, by instrument, direct—\n(a) get in and hold the trust property;\n(b) invest the trust property;\n(c) dispose of the trust property.\n(2) For performing the custodian trustee’s function under\nsubsection (1), the custodian trustee must perform all acts and\nexecute all documents as the managing trustees, by\ninstrument, direct.\n(3) This section applies subject to an express contrary intention in\nthe trust instrument.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 49\nAuthorised by the Parliamentary Counsel\n[s 51]\nTrusts Bill 2025\nPart 4 Custodian trustees\n51 Protection from liability for custodian trustee\n(1) A custodian trustee is not personally liable for an act done, or\nan omission made, under a direction of the managing trustees\nmentioned in section 50(1) or (2).\n(2) Also, a custodian trustee is not personally liable for an act\ndone, or an omission made, by any of the managing trustees.\n(3) This section applies subject to an express contrary intention in\nthe trust instrument.\n52 Liability of managing trustees for acts and omissions of\ncustodian trustee\n(1) This section applies if a custodian trustee does an act, or\nmakes an omission, under a direction of the managing trustees\nmentioned in section 50(1) or (2).\n(2) The managing trustees are liable for the act done, or the\nomission made, as if it were the managing trustees’ own act or\nomission.\n(3) This section applies subject to an express contrary intention in\nthe trust instrument.\n53 Application by custodian trustee for directions\n(1) A custodian trustee may apply to the court for directions if the\ncustodian trustee believes a direction of the managing trustees\nmentioned in section 50(1) or (2)—\n(a) conflicts with the trust instrument or the law; or\n(b) exposes, or would expose, the custodian trustee to a\npersonal liability; or\n(c) is otherwise objectionable.\n(2) The court may, on an application under subsection (1), make\nthe orders and give the directions the court considers\nappropriate, including an order about the costs of the\napplication.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 50\nAuthorised by the Parliamentary Counsel\n[s 54]\nTrusts Bill 2025\nPart 4 Custodian trustees\n(3) An order made under subsection (2) giving directions binds\nthe custodian trustee and the managing trustees.\n54 Proceedings to be in name of custodian trustee\n(1) A proceeding in relation to trust property that is vested in a\ncustodian trustee must be brought or defended, in the name of\nthe custodian trustee, as the managing trustees, by instrument,\ndirect.\n(2) If a custodian trustee brings or defends a proceeding under a\ndirection of the managing trustees mentioned in subsection\n(1)—\n(a) the custodian trustee is not personally liable for the costs\nof bringing or defending the proceeding; but\n(b) the managing trustees are personally liable for the costs\nof bringing or defending the proceeding, as if it had\nbeen brought or defended by the managing trustees.\n(3) This section applies subject to an express contrary intention in\nthe trust instrument.\n55 Persons dealing with custodian trustee\nA person dealing with a custodian trustee—\n(a) is not required to inquire about—\n(i) any direction of the managing trustees about the\ndealing; or\n(ii) whether the managing trustees have agreed to the\ndealing; and\n(b) is not affected by notice of the fact the managing\ntrustees have not agreed to the dealing.\n56 Ending custodian trusteeship\n(1) The following persons may apply to the court to end a\ncustodian trusteeship—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 51\nAuthorised by the Parliamentary Counsel\n[s 57]\nTrusts Bill 2025\nPart 5 Trustees’ duties\n(a) the custodian trustee;\n(b) a managing trustee of the trust;\n(c) a beneficiary of the trust.\n(2) The court may order the ending of the custodian trusteeship if\nsatisfied that—\n(a) it is the general wish of the beneficiaries of the trust; or\n(b) it is expedient to end the custodian trusteeship on other\ngrounds.\n(3) The court may, to give effect to the ending of the custodian\ntrusteeship—\n(a) give the directions it considers appropriate; and\n(b) make the vesting orders it considers necessary.\n57 Right to indemnity not affected\nNothing in this part limits the right of the managing trustees of\na trust, or of a custodian trustee of trust property, to be\nindemnified out of the trust property in relation to liabilities\nincurred in the proper administration of the trust.\nPart 5 Trustees’ duties\nDivision 1 Preliminary\n58 Application of part\nThis part does not limit any other duty to which a trustee is\nsubject, whether under this Act or otherwise.\n59 Definitions for part\nIn this part—\nprofessional trustee means—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nPage 52\nAuthorised by the Parliamentary Counsel\n[s 60]\nTrusts Bill 2025\nPart 5 Trustees’ duties\n(a) a trustee whose profession, business or employment is,\nor includes, acting as a trustee; or\n(b) a custodian trustee whose profession, business or\nemployment is, or includes, acting as a custodian\ntrustee.\ntrustee includes a custodian trustee.\nDivision 2 General duty to exercise care,\ndiligence and skill in administering\ntrusts\n60 Duty of professional trustees\n(1) This section applies to a trustee if the trustee is a professional\ntrustee.\n(2) The trustee has a duty, in administering a trust, to exercise the\ncare, diligence and skill that a prudent person engaged in the\ntrustee’s profession, business or employment would exercise\nin managing the affairs of other persons.\n61 Duty of particular non-professional trustees\n(1) This section applies to a trustee if—\n(a) the trustee is not a professional trustee; but\n(b) the trustee has, or holds themself out as having, special\nknowledge or experience relevant to administering trusts\nor trusts of a particular type.\n(2) The trustee has a duty, in administering a trust or a trust of the\nparticular type, to exercise the care, diligence and skill that a\nprudent person having that special knowledge or experience\nwould exercise in managing the affairs of other persons.\n62 Duty of other trustees\n(1) This section applies to a trustee if—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 53\nAuthorised by the Parliamentary Counsel\n[s 63]\nTrusts Bill 2025\nPart 5 Trustees’ duties\n(a) the trustee is not a professional trustee; and\n(b) section 61 does not apply to the trustee.\n(2) The trustee has a duty, in administering a trust, to exercise the\ncare, diligence and skill that a prudent person of business\nwould exercise in managing the affairs of other persons.\nDivision 3 Duty to act honestly and in good\nfaith\n63 Duty to act honestly and in good faith\nA trustee has a duty, in administering a trust, to act honestly\nand in good faith—\n(a) if the trust is a charitable trust—to further the purposes\nof the trust; or\n(b) otherwise—for the benefit of the beneficiaries of the\ntrust.\nDivision 4 Duties relating to accounts and\nother records\n64 Duty to keep accounts and other records\n(1) A trustee has a duty, in administering a trust, to—\n(a) keep accurate accounts and records for the trust; and\n(b) keep the accounts and records for at least 3 years after\nthe termination of the trust.\n(2) If a person is the trustee of more than 1 trust, the person must\nkeep separate accounts and records for each trust.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n\nPage 54\nAuthorised by the Parliamentary Counsel\n[s 65]\nTrusts Bill 2025\nPart 6 Investments\n65 Duty to make accounts available for inspection and to\nprovide copies\n(1) A trustee has a duty, in administering a trust, to do the\nfollowing on request by a beneficiary of the trust—\n(a) to make the accounts for the trust available for\ninspection by the beneficiary within a reasonable period\nafter the request is made;\n(b) to provide copies of the accounts for the trust to the\nbeneficiary, within a reasonable period after the request\nis made, on payment of the reasonable costs of\nproviding the copies.\n(2) However, subsection (1) does not apply if the request is\nunreasonable in the circumstances.\nExample of a request to provide copies of accounts that may be\nunreasonable in the circumstances—\na request by a beneficiary who has been provided with copies of the\naccounts to be provided with updated copies of the accounts at very\nshort intervals\n(3) Subsection (1) does not limit any right of a beneficiary—\n(a) to obtain other information from the trustee; or\n(b) to apply to the court for an order that the trustee provide\nother information.\n(4) In this section—\nbeneficiary, of a trust, includes a person in whose favour a\npower to distribute the trust property may be exercised.\nPart 6 Investments\nDivision 1 Preliminary\n66 Definitions for part\nIn this part—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29","sortOrder":5},{"sectionNumber":"retrieval-0007","sectionType":"document_chunk","heading":"Document excerpt 7","content":"Page 55\nAuthorised by the Parliamentary Counsel\n[s 67]\nTrusts Bill 2025\nPart 6 Investments\ninvestment power means—\n(a) a power of investment conferred on a trustee under the\ntrust instrument; or\n(b) a power conferred on a trustee under this part.\nprofessional investor means a person whose profession,\nbusiness or employment is, or includes, investing money for\nother persons.\nDivision 2 Duty of particular trustees to\nexercise care, diligence and skill in\nexercising investment powers\n67 Duty of trustees who are professional investors\n(1) This section applies to a trustee if the trustee is a professional\ninvestor.\n(2) The trustee has a duty, in exercising an investment power, to\nexercise the care, diligence and skill that a prudent person\nengaged in the trustee’s profession, business or employment\nwould exercise in managing the affairs of other persons.\n(3) This section applies subject to a contrary intention in the trust\ninstrument.\nNote—\nSee also part 5, division 2 in relation to a trustee’s general duty in\nadministering a trust.\n68 Duty of particular trustees who are not professional\ninvestors\n(1) This section applies to a trustee if—\n(a) the trustee is not a professional investor; but\n(b) the trustee has, or holds themself out as having, special\nknowledge or experience in investing money for other\npersons.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 56\nAuthorised by the Parliamentary Counsel\n[s 69]\nTrusts Bill 2025\nPart 6 Investments\n(2) The trustee has a duty, in exercising an investment power, to\nexercise the care, diligence and skill that a prudent person\nhaving that special knowledge or experience would exercise in\nmanaging the affairs of other persons.\n(3) This section applies subject to a contrary intention in the trust\ninstrument.\nNote—\nSee also part 5, division 2 in relation to a trustee’s general duty in\nadministering a trust.\nDivision 3 Duties and powers in relation to\ninvestments\n69 Power to invest\n(1) A trustee may invest trust funds in any form of investment,\nother than a forbidden form of investment.\n(2) Also, a trustee may, at any time—\n(a) vary an investment of trust funds; or\n(b) realise an investment of trust funds and reinvest an\namount resulting from the realisation in any form of\ninvestment, other than a forbidden form of investment.\n(3) A trustee must, in exercising power under subsection (1) or\n(2), comply with any provision of the trust instrument that is\nbinding on the trustee and requires the trustee to—\n(a) obtain a consent or approval in relation to trust\ninvestments; or\n(b) comply with a direction in relation to trust investments.\n(4) In this section—\nforbidden form of investment, in relation to trust funds,\nmeans a form of investment that is expressly forbidden by the\ntrust instrument.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 57\nAuthorised by the Parliamentary Counsel\n[s 70]\nTrusts Bill 2025\nPart 6 Investments\nNote—\nSee, however, section 75 for a power that can not be forbidden, or\notherwise limited, by a trust instrument.\n70 Law and equity preserved\n(1) A rule or principle of law or equity that imposes a duty on a\ntrustee exercising an investment power continues to apply\nexcept to the extent it is inconsistent with this Act or another\nAct or with the trust instrument.\n(2) Without limiting subsection (1), the rules or principles\nmentioned in that subsection include a rule or principle\nimposing any of the following duties—\n(a) a duty to exercise the powers of a trustee in the best\ninterests of all present and future beneficiaries of the\ntrust;\n(b) a duty to invest trust funds in investments that are not\nspeculative or hazardous;\n(c) a duty to act impartially towards beneficiaries and\nbetween different classes of beneficiaries;\n(d) a duty to obtain advice.\n(3) A rule or principle of law or equity relating to a provision in a\ntrust instrument that purports to exempt, limit the liability of,\nor indemnify a trustee in relation to a breach of trust continues\nto apply.\n(4) If a trustee is under a duty to obtain advice, the reasonable\ncosts of obtaining the advice are payable out of the trust\nfunds.\n71 Matters to which trustee must have regard in exercising\ninvestment power\n(1) A trustee must, in exercising an investment power, have\nregard to the following matters, to the extent they are\nappropriate to the circumstances of the trust—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 58\nAuthorised by the Parliamentary Counsel\n[s 72]\nTrusts Bill 2025\nPart 6 Investments\n(a) the purposes of the trust and the needs and\ncircumstances of the beneficiaries;\n(b) the desirability of diversifying the trust investments;\n(c) the nature of, and the risk associated with, the existing\ntrust investments and other trust property;\n(d) the need to maintain the real value of the capital or\nincome of the trust;\n(e) the risk of capital or income loss or depreciation;\n(f) the potential for capital appreciation;\n(g) the likely income return and the timing of income\nreturn;\n(h) the length of the term of the proposed investment;\n(i) the probable duration of the trust;\n(j) the liquidity and marketability of the proposed\ninvestment during, and at the end of, the term of the\nproposed investment;\n(k) the total value of the trust property;\n(l) the effect of the proposed investment for the tax liability\nof the trust;\n(m) the likelihood of inflation affecting the value of the\nproposed investment or other trust property;\n(n) the cost (including commissions, fees, charges and\nduties payable) of making the proposed investment;\n(o) the results of a review of the existing trust investments.\n(2) Subsection (1) does not limit the matters to which a trustee\nmay have regard in exercising an investment power.\n72 Advice for particular investment purposes\n(1) A trustee may obtain independent and impartial advice, from\na person the trustee reasonably believes is competent to give\nthe advice, if the advice is reasonably required for—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 59\nAuthorised by the Parliamentary Counsel\n[s 73]\nTrusts Bill 2025\nPart 6 Investments\n(a) the investment of trust funds; or\n(b) the management of the trust investments.\n(2) If the trustee obtains advice under subsection (1), the\ntrustee—\n(a) must consider the advice; and\n(b) may pay, out of the trust funds, the reasonable costs of\nobtaining the advice.\n73 Duty to review investments\nA trustee must, at least every 12 months, review the\nperformance, individually and as a whole, of the trust\ninvestments.\n74 Investment in securities under RITS system\n(1) A chose in action arising under the RITS system that entitles\nits holder to a security of a particular description (the\nunderlying security) is, for this Act and a trust instrument,\ntaken to be the same in all respects as the underlying security.\n(2) The holding or acquisition by a trustee of a chose in action\nmentioned in subsection (1) is taken to be an investment by\nthe trustee in the underlying security.\n(3) It does not matter that the right conferred by the chose in\naction is a right in relation to securities of a particular\ndescription and not in relation to particular securities.\n(4) In this section—\nRITS system means the Reserve Bank Information and\nTransfer System operated by the Reserve Bank of Australia,\nas operating from time to time.\n75 Power to provide residence for beneficiary to live in\n(1) A trustee may do any of the following for a beneficiary of the\ntrust—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 60\nAuthorised by the Parliamentary Counsel\n[s 75]\nTrusts Bill 2025\nPart 6 Investments\n(a) buy or construct a residence for the beneficiary to live\nin;\n(b) retain a residence that is part of the trust property for the\nbeneficiary to live in;\n(c) enter into an agreement or arrangement to secure a right\nto use a residence for the beneficiary to live in.\nExample for paragraph (c)—\nentering into a residence contract under the Retirement Villages\nAct 1999\n(2) Also, a trustee who exercises power under subsection (1) may\nmake the residence available to the beneficiary to live in on\nthe conditions the trustee considers appropriate.\n(3) However, a trustee may exercise power under subsection (1),\nor impose conditions under subsection (2), only if the exercise\nof the power, or the imposition of the conditions, is consistent\nwith the extent of the beneficiary’s interest under the trust.\n(4) A trustee may retain a residence bought, constructed, retained\nor otherwise secured for use by a beneficiary under this\nsection after the beneficiary has stopped living in the\nresidence.\n(5) To remove any doubt, it is declared that subsection (4) does\nnot limit the operation of the Retirement Villages Act 1999 or\nany other Act.\n(6) Despite section 69, a trust instrument can not forbid the\nexercise of, or otherwise limit, a trustee’s power under this\nsection.\n(7) In this section—\nresidence includes—\n(a) a building or part of a building designed, or converted or\ncapable of being converted, for use as a residence; and\n(b) amenities or facilities for use in association with the use\nof a residence; and\n(c) an interest in a residence.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 61\nAuthorised by the Parliamentary Counsel\n[s 76]\nTrusts Bill 2025\nPart 6 Investments\n76 Power to authorise another person to exercise trustee’s\ninvestment powers\n(1) A trustee may, by instrument, authorise another person to\nexercise any of the trustee’s investment powers.\n(2) The authorisation may be made on the terms the trustee\nconsiders appropriate, including terms relating to\nremuneration.\n(3) However, the authorisation of the other person does not limit\nany duty or other requirement applying to the trustee under\nthis part or part 5 in relation to the exercise of the trustee’s\ninvestment powers.\nNote—\nSee also section 77 in relation to the liability of the trustee for the acts\ndone, and the omissions made, by the person in exercising the trustee’s\ninvestment powers.\n(4) This section applies subject to an express contrary intention in\nthe trust instrument.\nDivision 4 Liability of trustees in relation to\nexercise of investment powers\n77 Liability of trustee for acts and omissions of person\nauthorised to exercise trustee’s investment powers\n(1) This section applies if a trustee authorises another person\nunder section 76 to exercise any of the trustee’s investment\npowers.\n(2) The trustee is liable for the acts done, and the omissions made,\nby the other person in exercising the trustee’s investment\npowers as if the acts and omissions were the trustee’s own acts\nand omissions.\n(3) This section applies subject to an express contrary intention in\nthe trust instrument.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 62\nAuthorised by the Parliamentary Counsel\n[s 78]\nTrusts Bill 2025\nPart 6 Investments\n78 Particular loans by trustee not in breach of trust\n(1) This section applies if a trustee lends trust funds on the\nsecurity of property.\n(2) The trustee is not in breach of trust only because of the\ncomparison of the amount of the loan with the value of the\nproperty when the loan was made if—\n(a) it appears to the court that—\n(i) in making the loan, the trustee was acting on an\nindependent valuation of the property; and\n(ii) the amount of the loan was not more than\ntwo-thirds of the value of the property stated in the\nindependent valuation; and\n(iii) the loan was made in reliance on the independent\nvaluation; or\n(b) the trustee is insured by a prescribed insurer against all\nloss that may arise because of the borrower’s default.\n(3) For this section, a valuation of a property made by a person is\nan independent valuation of the property if the trustee—\n(a) instructed and employed the person, independently of\nany owner of the property, to make the valuation; and\n(b) reasonably believed the person was competent to make\nthe valuation.\n(4) In this section—\nprescribed insurer means an entity, prescribed by regulation,\nthat carries on the business of insurance.\n79 Limitation of liability of trustee for loss on improper\ninvestment\n(1) This section applies if—\n(a) a trustee improperly lends trust funds on the security of\nproperty; but\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 63\nAuthorised by the Parliamentary Counsel\n[s 80]\nTrusts Bill 2025\nPart 6 Investments\n(b) the loan would have been a proper investment if a lesser\namount had been lent.\n(2) For the trustee’s liability in relation to the investment—\n(a) the security is taken to be a proper investment in relation\nto the lesser amount; and\n(b) the trustee is liable only for the difference between the\nactual amount lent and the lesser amount, with interest.\n80 Court may take into account investment strategy etc. in\nproceeding for breach of trust\n(1) This section applies in relation to a proceeding against a\ntrustee for a breach of trust in relation to the exercise of an\ninvestment power.\n(2) The court may, in considering the question of the trustee’s\nliability, take the following matters into account—\n(a) the nature and purpose of the trust;\n(b) the amount of the trust funds invested in the exercise of\nthe investment power;\n(c) whether the trustee had regard to the matters mentioned\nin section 71 to the extent they were appropriate to the\ncircumstances of the trust;\n(d) whether the trust investments have been made under an\ninvestment strategy formulated in accordance with the\nduty of a trustee under this part;\n(e) the extent to which the trustee acted on advice that the\ntrustee reasonably believed—\n(i) was given by a person who was independent and\ncompetent to give the advice; and\n(ii) was impartial.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 64\nAuthorised by the Parliamentary Counsel\n[s 81]\nTrusts Bill 2025\nPart 7 General powers of trustees\n81 Court may set off gains and losses\n(1) This section applies in relation to a proceeding against a\ntrustee for a breach of trust in relation to an investment if a\nloss has been, or is expected to be, sustained by the trust.\n(2) The court may set off all or part of the loss resulting from the\ninvestment against all or part of any gain resulting from any\nother investment, whether or not the other investment is a\nbreach of trust.\n(3) The power of set-off conferred under subsection (2) is in\naddition to any other power or entitlement to set off all or part\nof any loss against any property.\nPart 7 General powers of trustees\nDivision 1 Powers in relation to trust property\n82 General powers in relation to trust property\n(1) A trustee has, in relation to the trust property, all the powers of\nan absolute owner of the property.\nNotes—\n1 See, however, part 5 in relation to the duties of a trustee in\nadministering a trust.\n2 See also the Succession Act 1981, section 49B in relation to\nparticular limitations on a personal representative’s power to carry\non a business.\n(2) Without limiting subsection (1), the powers conferred on a\ntrustee under subsection (1) include the following powers—\n(a) the power to sell the trust property;\n(b) the power to lease the trust property or to renew, extend\nor vary a lease of the trust property;\n(c) the power to mortgage the trust property or to renew,\nextend or vary a mortgage of the trust property;\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 65\nAuthorised by the Parliamentary Counsel\n[s 83]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(d) for trust property that is securities of a corporation—the\npower to deal with the securities;\n(e) the power to settle a debt or claim in relation to the trust\nproperty;\n(f) the power to insure the trust property against the loss of\nor damage to the trust property or any risk or liability\nrelating to the trust property.\n(3) A power conferred under subsection (1), other than a power\nmentioned in subsection (2)(a) to (f), may be excluded or\nmodified by an express statement to that effect in the trust\ninstrument.\nNote—\nSee, however, section 216 in relation to the exercise of particular\npowers under this section by a statutory trustee.\n83 Power to postpone sale, calling in and conversion of\nparticular trust property\n(1) A trustee may postpone the sale, calling in or conversion of\ntrust property that the trustee has a duty to sell.\n(2) Subject to an express contrary intention in the trust\ninstrument, if the trustee’s duty to sell arises because of a trust\nor direction for sale, the trustee may postpone the sale of the\ntrust property for an indefinite and unlimited period, whether\nor not that period is longer than the period during which the\ntrust or direction for sale remains valid.\n(3) However, this section does not apply if the trust property is of\na wasting, speculative or reversionary nature.\nNotes—\n1 See, however, the Succession Act 1981, section 49B in relation to\nparticular limitations on a personal representative’s power to carry\non a business.\n2 See also section 216 in relation to the exercise of power under this\nsection by a statutory trustee.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32","sortOrder":6},{"sectionNumber":"retrieval-0008","sectionType":"document_chunk","heading":"Document excerpt 8","content":"Page 66\nAuthorised by the Parliamentary Counsel\n[s 84]\nTrusts Bill 2025\nPart 7 General powers of trustees\n84 Power to execute instruments etc.\nA trustee may, in relation to the trust property, do anything,\nmake any omission, and execute any instrument, necessary to\ncarry into effect the powers and authorities given under this\nAct or the trust instrument.\nDivision 2 Expenditure in relation to trust\nproperty\n85 Power to expend amounts\n(1) A trustee may, in relation to the trust property, expend an\namount, including an amount from capital, that is subject to\nthe same trusts for 1 or more of the following purposes—\n(a) to maintain or renovate the trust property, whether or not\nthe work is necessary for the purpose of salvaging the\nproperty;\n(b) to improve or develop the trust property;\n(c) to pay calls on shares subject to the same trust;\n(d) to pay outgoings in relation to the trust property;\n(e) if the trust property is land or a water allocation—to\nsubdivide the land or water allocation and pay related\nexpenses;\n(f) to provide, construct or maintain any of the following\nfor the trust property if they are likely to be beneficial to\nthe property—\n(i) roads, footpaths and other works for pedestrian or\nvehicular use;\n(ii) utility services and other works.\n(2) If the trustee is a trustee corporation, the trustee may exercise\nthe power conferred under subsection (1)(c) even if the shares\non which the calls are made are shares in the trustee\ncorporation.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 67\nAuthorised by the Parliamentary Counsel\n[s 86]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(3) In this section—\nmaintain, in relation to property, includes repair the property\nand provide for the upkeep of the property.\noutgoings includes rates, premiums, taxes, assessments and\ninsurance premiums.\n86 Power to apportion expenditure between income and\ncapital and recoup particular expenditure\n(1) A trustee may, in relation to the trust property, apportion\nexpenditure made under section 85 between capital and\nincome or otherwise among the persons entitled to the capital\nor income in the way the trustee considers equitable.\n(2) If all or part of the expenditure is made out of capital, the\ntrustee may recoup the expenditure made out of capital from\nincome, if to do so would be equitable in all the\ncircumstances.\n(3) If all or part of the expenditure is made out of income, the\ntrustee may recoup the expenditure made out of income from\ncapital, if to do so would be equitable in all the circumstances.\n(4) The exercise of power under this section is subject to—\n(a) this Act; and\n(b) any direction of the court; and\n(c) an express contrary intention in the trust instrument.\nDivision 3 Appropriation\n87 Definitions for division\nIn this division—\nentitled person see section 90(1)(a) and (b).\nextension application see section 89(4).\ninterested person see section 88(2).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 68\nAuthorised by the Parliamentary Counsel\n[s 88]\nTrusts Bill 2025\nPart 7 General powers of trustees\nvariation application see section 89(1)(a).\n88 Notice of proposed appropriation\n(1) This section applies if a trustee proposes to appropriate trust\nproperty under section 90.\n(2) Before making the appropriation, the trustee must give written\nnotice of the proposed appropriation to each person interested\nin the appropriation (each an interested person).\n(3) However, if the trustee is an interested person, subsection (2)\ndoes not require the trustee to give notice of the proposed\nappropriation to themself.\n(4) Subsection (5) applies if an interested person is—\n(a) an adult with impaired capacity for financial matters\nrelating to the proposed appropriation; or\n(b) a child.\n(5) The trustee may comply with subsection (2) in relation to the\ninterested person only by giving notice to—\n(a) if the interested person is an adult—each administrator\nor attorney for the interested person who is authorised,\nunder their appointment as administrator or attorney, to\nexercise power for financial matters relating to the\nproposed appropriation; or\n(b) if the interested person is a child—each guardian of the\nchild.\n89 Interested person may apply to vary proposed\nappropriation or waive right to apply\n(1) An interested person who is given notice under section 88 of a\nproposed appropriation may—\n(a) make an application to the court to vary the proposed\nappropriation (a variation application); or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 69\nAuthorised by the Parliamentary Counsel\n[s 90]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(b) by written notice given to the trustee at any time, waive\nthe interested person’s right to make a variation\napplication.\n(2) Subject to subsections (3) and (4), a variation application must\nbe started within 2 months after the day the interested person\nis given notice of the proposed appropriation.\n(3) The interested person may, by written notice given to the\ntrustee within the period mentioned in subsection (2), shorten\nthe period that would otherwise apply under subsection (2) to\nthe shorter period stated in the notice.\n(4) The court may, on application (an extension application)\nmade by the interested person at any time, allow a variation\napplication to be started within a longer period.\n(5) The court may make the orders it considers appropriate in\nrelation to a variation application or an extension application.\n(6) This section applies subject to section 91.\n90 Appropriation to satisfy legacy or share generally\n(1) A trustee may appropriate any part of the trust property to\nsatisfy all or part of—\n(a) a legacy, payable out of the trust property, to which a\nperson (an entitled person) is entitled; or\n(b) a share of the trust property, whether contingent or\nabsolute, to which a person (also an entitled person) is\nentitled.\n(2) An appropriation of trust property under this section may be\nmade only if—\n(a) the appropriation does not adversely affect any specific\ngift of the trust property; and\n(b) the entitled person consents to the appropriation; and\n(c) for an appropriation in relation to which the trustee is an\ninterested person, the appropriation has been approved\nby—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 70\nAuthorised by the Parliamentary Counsel\n[s 90]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(i) each other interested person; or\n(ii) the court, on an ex parte application by the trustee\nor otherwise; and\n(d) notice of the proposed appropriation has been given\nunder section 88; and\n(e) the circumstances mentioned in subsection (3)(a), (b) or\n(c) apply.\n(3) For subsection (2)(e), the circumstances are—\n(a) all of the following apply—\n(i) the relevant application period for each interested\nperson has ended;\n(ii) no interested person has, within the relevant\napplication period for the person, started a\nvariation application and served the application on\nthe trustee;\n(iii) if any interested person has, since the end of the\nrelevant application period for the person, started\nan extension application and served the application\non the trustee—the extension application has been\ndismissed by the court; or\n(b) if any interested person has started a variation\napplication and served the application on the trustee\nwithin the relevant application period for the person or\nany longer period allowed by the court on an extension\napplication—the variation application has been\ndismissed by the court; or\n(c) each interested person has given the trustee notice under\nsection 89(1)(b) waiving the person’s right to make a\nvariation application.\n(4) For making an appropriation under this section, the trustee\nmay, under section 117, ascertain and fix the value of all or\nany part of the trust property as at the day the appropriation is\nmade.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 71\nAuthorised by the Parliamentary Counsel\n[s 91]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(5) An appropriation made under this section is conclusive and\nbinding on all persons who are, or may be, interested in the\ntrust property, unless varied by the court on a variation\napplication.\n(6) This section does not limit or otherwise affect any power of\nappropriation conferred under the trust instrument.\n(7) This section applies subject to section 91.\n(8) In this section—\nrelevant application period, for an interested person, means\nthe following period within which a variation application by\nthe interested person must be started—\n(a) if paragraph (b) does not apply—the period mentioned\nin section 89(2);\n(b) if the interested person has given the trustee notice\nunder section 89(3)—the shorter period stated in the\nnotice.\n91 Exercise of power for particular interested persons and\nentitled persons\n(1) If an interested person is a child, only the guardian of the child\nmay—\n(a) give notice under section 89(1)(b) waiving the interested\nperson’s right to make a variation application; or\n(b) give notice under section 89(3) shortening the period\nthat would otherwise apply under section 89(2); or\n(c) approve an appropriation of trust property, as mentioned\nin section 90(2)(c)(i).\n(2) If an entitled person is a child, only the guardian of the child\nmay give consent for the child to the making of an\nappropriation of trust property, as mentioned in section\n90(2)(b).\n(3) If there is more than 1 guardian of a child, the guardians must\nact jointly in exercising power for the child for a matter\nmentioned in subsection (1) or (2).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 72\nAuthorised by the Parliamentary Counsel\n[s 92]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(4) Sections 89 and 90 do not limit or otherwise affect—\n(a) the operation of a provision of another Act that provides\nfor how, or by whom, an application to the court may be\nmade on behalf of a person under a legal incapacity; or\n(b) the powers of an administrator or attorney for a person\nwith impaired capacity for a matter.\n92 Appropriation to pay annuity\n(1) This section applies if a trust instrument provides for the\npayment of an annuity, whether or not the trust instrument\nprovides that the annuity may be charged on the trust property.\n(2) The trustee may set aside and appropriate out of any trust\nproperty available for payment of the annuity an amount (the\nappropriated amount) that, in the trustee’s opinion at the time\nof appropriation, is enough, when invested, to provide out of\nthe income of the investment the amount required to pay the\nannuity.\n(3) After the appropriation has been made—\n(a) the annuitant has the same right of recourse to the\ncapital and income of the appropriated amount as the\nannuitant would have had against the trust property if no\nappropriation had been made; and\n(b) the trustee may distribute the residue of the trust\nproperty and the income of the trust property in\naccordance with the trust instrument.\n(4) On the distribution of the residue of the trust property and the\nincome of the trust property under subsection (3)(b), the\nresidue and the income cease to be liable for the annuity.\n(5) In this section—\nannuity includes any periodic payment.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 73\nAuthorised by the Parliamentary Counsel\n[s 93]\nTrusts Bill 2025\nPart 7 General powers of trustees\n93 Notice to relevant registrar if land or water allocation to\nbe distributed after appropriation to pay annuity\n(1) This section applies if a trustee proposes to distribute, under\nsection 92(3)(b), trust property that is land or a water\nallocation.\n(2) The trustee must give the relevant registrar written notice that\nthe trust property may be distributed because of an\nappropriation made under section 92(2) for payment of an\nannuity.\n(3) The relevant registrar is not required to inquire into whether\nthe appropriated amount set aside under section 92(2) is\nenough to provide for payment of the annuity.\nDivision 4 Delegation\nSubdivision 1 Preliminary\n94 Definitions for division\nIn this division—\ndelegate see section 95(4)(b).\ninstrument of delegation see section 95(2).\nstated circumstances, in relation to the delegation of a matter,\nsee section 95(4)(a).\nSubdivision 2 Delegation by trustees\n95 Power to delegate matters\n(1) This section applies if a trustee—\n(a) is absent, or is about to be absent, from the State; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n\nPage 74\nAuthorised by the Parliamentary Counsel\n[s 96]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(b) is, or may be about to become, because of physical\ninfirmity, temporarily incapable of performing the duties\nof a trustee.\n(2) The trustee may, by instrument (an instrument of delegation),\ndelegate the administration or exercise of all or any trusts,\npowers, authorities and discretions vested in the trustee as\ntrustee to—\n(a) an individual who resides in the State, if—\n(i) for an individual who is a co-trustee of the\ntrustee—the individual is not the trustee’s only\nco-trustee; or\n(ii) for another individual—section 13(1) would not\nprevent the individual from being appointed as a\ntrustee; or\n(b) a trustee corporation that carries on business in the\nState, if section 13(1) would not prevent the trustee\ncorporation from being appointed as a trustee.\n(3) For subsection (2), it does not matter whether the trusts,\npowers, authorities and discretions are vested in the trustee\nalone or jointly with 1 or more other persons.\n(4) The instrument of delegation must—\n(a) state the circumstances in which the delegation is to\noperate (the stated circumstances); and\n(b) be signed by the trustee and the person to whom the\nmatters are delegated (the delegate).\n(5) This section applies despite any rule or principle of law or\nequity to the contrary.\n96 Period during which delegation is in effect\n(1) The delegation of a matter under section 95 commences—\n(a) on the happening of an event stated in the instrument of\ndelegation as the time the delegation commences; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 75\nAuthorised by the Parliamentary Counsel\n[s 97]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(b) if the instrument of delegation does not state an event as\nmentioned in paragraph (a)—\n(i) on the day stated in the instrument of delegation as\nthe day the delegation commences; or\n(ii) if no day is stated for that purpose—on the day the\ninstrument of delegation is signed.\n(2) The delegation of the matter continues in effect until the first\nof the following happens—\n(a) the happening of an event stated in the instrument of\ndelegation as the time the delegation ends;\n(b) the beginning of the day, if any, stated in the instrument\nof delegation as the day the delegation ends;\n(c) the beginning of the day that is 12 months after the day\nthe delegation commences;\n(d) the delegation is revoked under subdivision 3;\n(e) the trustee is replaced or removed, or is otherwise\ndischarged from the trust, whether under part 3 or\notherwise;\n(f) the trustee dies.\n97 Effect of delegation\n(1) If a trustee delegates a matter under section 95, the delegate\nhas, within the scope of the delegation, the same trusts,\npowers, authorities, discretions, duties and liabilities in\nrelation to the matter as the delegate would have if the\ndelegate were the trustee, other than the power of delegation\nconferred under section 95.\n(2) However, the delegate may perform or exercise the delegated\nmatter only in the stated circumstances.\n(3) The delegate is subject to the court’s jurisdiction and power in\nthe administration of the trust as if the delegate were the\ntrustee.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 76\nAuthorised by the Parliamentary Counsel\n[s 98]\nTrusts Bill 2025\nPart 7 General powers of trustees\n98 Liability of trustee for acts and omissions of delegate\nIf a trustee delegates a matter under section 95, the trustee is\nliable for the acts done, and the omissions made, by the\ndelegate in relation to the matter as if they were the trustee’s\nown acts and omissions.\n99 Trustee to notify particular persons of delegation\n(1) If a trustee delegates a matter under section 95, the trustee\nmust give written notice of the delegation to—\n(a) if the trustee has any co-trustees—each co-trustee; and\n(b) if there is an appointor for the trust who is not also the\ntrustee—the appointor.\n(2) If neither subsection (1)(a) nor (b) applies, the trustee must\ngive written notice of the delegation to each beneficiary of the\ntrust, to the extent it is practicable to do so.\n(3) Subsection (4) applies if a beneficiary to whom notice must be\ngiven under subsection (2) is—\n(a) an adult with impaired capacity for financial matters\nrelating to the adult’s interest under the trust; or\n(b) a child.\n(4) The trustee may comply with subsection (2) in relation to the\nbeneficiary only by giving notice to—\n(a) if the beneficiary is an adult—each administrator or\nattorney for the beneficiary who is authorised, under\ntheir appointment as administrator or attorney, to\nexercise power for financial matters relating to the\nbeneficiary’s interest under the trust; or\n(b) if the beneficiary is a child—each guardian of the child.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27","sortOrder":7},{"sectionNumber":"retrieval-0009","sectionType":"document_chunk","heading":"Document excerpt 9","content":"Page 77\nAuthorised by the Parliamentary Counsel\n[s 100]\nTrusts Bill 2025\nPart 7 General powers of trustees\nSubdivision 3 Revocation of delegation\n100 Revocation by trustee—instrument of revocation\nA trustee may revoke the delegation of a matter under section\n95 by giving the delegate an instrument, signed by the trustee,\nrevoking the delegation.\n101 Revocation by trustee—impaired capacity for\nadministering trust\nThe delegation of a matter under section 95 is revoked if the\ntrustee becomes a person with impaired capacity for\nadministering the trust.\n102 Revocation by delegate\nThe delegation of a matter under section 95 is revoked if—\n(a) the delegate resigns by written notice given to the\ntrustee; or\n(b) the delegate becomes disqualified from being appointed\nas a trustee by an order made under section 168; or\n(c) for a delegate who is an individual, the delegate—\n(i) dies; or\n(ii) becomes a person with impaired capacity for\nadministering the trust; or\n(iii) becomes an insolvent under administration; or\n(d) for a delegate that is a trustee corporation, the\ndelegate—\n(i) stops carrying on business; or\n(ii) becomes a Chapter 5 body corporate; or\n(iii) is deregistered or otherwise ceases to exist.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n\nPage 78\nAuthorised by the Parliamentary Counsel\n[s 103]\nTrusts Bill 2025\nPart 7 General powers of trustees\nSubdivision 4 Protections for third parties\n103 Definition for subdivision\nIn this subdivision—\ndelegate includes a former delegate.\n104 Validity of particular acts of delegate in favour of third\nparty\n(1) This section applies if—\n(a) a delegate does an act, or signs an instrument, in favour\nof another person in the exercise, or purported exercise,\nof power under a delegation made under section 95; but\n(b) the delegate lacks the power to do the act, or sign the\ninstrument, because the delegation of the matter, for any\nreason, is not in operation.\n(2) The act done or instrument signed by the delegate is, in favour\nof the other person, as valid and effective as it would be if the\ndelegation of the matter had been in operation.\n(3) Subsection (2) does not apply if, when the act was done or the\ninstrument was signed, the other person had actual notice that\nthe delegation of the matter was not in operation.\n(4) For this section, the delegation of a matter is in operation at a\nparticular time only if, at that time—\n(a) the delegation of the matter has commenced and is in\neffect; and\nNote—\nSee section 96 in relation to when the delegation of a matter\ncommences and is in effect.\n(b) the stated circumstances apply.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n\nPage 79\nAuthorised by the Parliamentary Counsel\n[s 105]\nTrusts Bill 2025\nPart 7 General powers of trustees\n105 Effect of statutory declaration by delegate\n(1) This section applies if a delegate makes a statutory declaration\nrelating to a trust stating that—\n(a) the delegation of a matter under section 95 has\ncommenced and has not been revoked or otherwise\nended, and the circumstances in which the delegation is\nto operate apply; or\n(b) in any transaction, the delegate is acting in the\nadministration of the trust.\n(2) The statutory declaration is, in favour of a person dealing with\nthe delegate, conclusive evidence of the matter stated.\n106 Persons dealing with delegate in good faith not affected\nby notice of trust\n(1) This section applies if, in any transaction, it appears from the\ndelegation of a matter under section 95, or from any evidence\nrequired for the purpose of a delegation under that section or\notherwise, that the delegate is acting in the administration of a\ntrust.\n(2) A person dealing in good faith with the delegate is not\naffected by notice of the trust.\nDivision 5 Appointment of agents\n107 Appointment of agent\n(1) A trustee may, instead of acting personally, appoint an agent\nto transact business, or do another thing, required to be done\nin the administration of the trust.\n(2) Without limiting subsection (1), a trustee may appoint an\nagent to do 1 or more of the following—\n(a) receive and pay amounts;\n(b) give a receipt for property payable, transferable or\ndeliverable to the trustee;\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 80\nAuthorised by the Parliamentary Counsel\n[s 108]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(c) keep trust accounts.\n(3) The persons who may be appointed as an agent under this\nsection include—\n(a) an accountant; and\n(b) a financial institution; and\n(c) a financial services licensee, within the meaning of the\nCorporations Act, section 9, whose Australian financial\nservices licence under that Act covers dealing in, or\nproviding advice about, securities; and\n(d) a solicitor; and\n(e) a trustee corporation.\n(4) Also, a trustee may appoint a co-trustee as an agent.\n(5) However, a trustee may not appoint a beneficiary of the trust\nas an agent even if the beneficiary is also a co-trustee.\n108 Payment of agent and reimbursement of trustee\nIf a trustee appoints an agent, the trustee—\n(a) may pay the agent; and\n(b) is entitled to be allowed and paid any charge or expense\nthat is reasonably and properly incurred because of the\nagent’s appointment.\nDivision 6 Application of income by\ntrustee-mortgagee in possession\n109 Definitions for division\nIn this division—\nmortgage debt see section 110(1)(a).\nprimary beneficiary, in relation to a mortgage debt held on\ntrust for persons in succession, means the person entitled to\nthe interest of the mortgage debt.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 81\nAuthorised by the Parliamentary Counsel\n[s 110]\nTrusts Bill 2025\nPart 7 General powers of trustees\npriority outgoing, in relation to land the subject of a\nmortgage, means any of the following—\n(a) rents, taxes, rates and other outgoings affecting the land;\n(b) premiums on insurance properly payable in respect of\nthe land;\n(c) annual amounts or other payments and the interest on\nprincipal amounts having priority to the mortgage.\n110 Application of income—priority outgoings accruing after\ntrustee becomes mortgagee in possession\n(1) This section applies if—\n(a) a trustee is entitled, whether solely or as a\nco-mortgagee, to a debt that is secured, wholly or partly,\nby a mortgage of land (the mortgage debt); and\n(b) the mortgage debt is held on trust for persons in\nsuccession; and\n(c) the trustee becomes mortgagee in possession of the land.\n(2) The trustee must apply the income of the land received by the\ntrustee to pay the priority outgoings in relation to the land, but\nonly if, or to the extent, the priority outgoings accrue on or\nafter the day the trustee becomes mortgagee in possession.\n(3) If a priority outgoing relates to a period partly before and\npartly after the day the trustee becomes mortgagee in\npossession, the priority outgoing is taken to accrue from day\nto day and must be apportioned accordingly.\n(4) Subject to the rights of the mortgagor, the trustee must hold\nthe balance of the income of the land received by the trustee\non the trusts to which the mortgage debt is subject.\n111 Payment to primary beneficiary on recovery of all or part\nof mortgage debt\n(1) This section applies if—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 82\nAuthorised by the Parliamentary Counsel\n[s 112]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(a) all or part of the mortgage debt is recovered, whether by\nrepayment or on realisation of the security or otherwise;\nand\n(b) under section 110, the trustee has applied income of the\nland received by the trustee to pay 1 or more priority\noutgoings in relation to the land; and\n(c) the income, or part of the income, applied by the trustee\nwould otherwise have been payable to the primary\nbeneficiary as interest of the mortgage debt.\n(2) As between the beneficiaries for whom the mortgage debt is\nheld on trust—\n(a) the income, or the part of the income, applied by the\ntrustee that would otherwise have been payable to the\nprimary beneficiary is taken to be arrears of interest on\nthe mortgage debt; and\n(b) the amount recovered by the trustee must be apportioned\naccordingly.\n(3) However, the primary beneficiary is not entitled to be paid\ninterest on the amount taken to be arrears of interest under\nsubsection (2)(a).\n112 Application of income—priority outgoings accruing\nbefore trustee becomes mortgagee in possession\n(1) This section applies in relation to a priority outgoing in\nrelation to the land if, or to the extent, the priority outgoing\naccrued before the day the trustee became mortgagee in\npossession of the land.\n(2) If the trustee considers it necessary to do so in the\nadministration of the trust, the trustee may apply the income\nof the land received by the trustee in payment of the priority\noutgoing.\n(3) However, the primary beneficiary is entitled to recoup out of\nthe capital of the mortgage debt any payment made by the\ntrustee under subsection (2).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 83\nAuthorised by the Parliamentary Counsel\n[s 113]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(4) This section applies despite any other provision of this\ndivision.\nDivision 7 Delivery of chattels\n113 Delivery of chattels to beneficiary with life interest or\nother limited interest\n(1) This section applies if—\n(a) under a trust, a beneficiary is entitled to a life interest, or\nanother limited interest, in any chattels; and\n(b) the beneficiary asks the trustee to deliver the chattels to\nthe beneficiary.\n(2) The trustee may deliver the chattels to the beneficiary on\nbeing given a signed inventory for the chattels by the\nbeneficiary.\n114 Delivery of chattels to child\n(1) This section applies if, under a trust, a child is beneficially\nentitled to any chattels.\n(2) The trustee may deliver the chattels to the child or a guardian\nof the child.\n(3) The receipt of the child or the guardian is a complete\ndischarge to the trustee for the chattels delivered under\nsubsection (2).\n(4) The power conferred under this section is in addition to the\npower conferred under section 128 and, for section 128(4), the\nvalue of the chattels is not to be taken into account in any way.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n\nPage 84\nAuthorised by the Parliamentary Counsel\n[s 115]\nTrusts Bill 2025\nPart 7 General powers of trustees\nDivision 8 Other provisions\n115 Application of insurance money\n(1) This section applies if—\n(a) an insurance policy has been kept up against—\n(i) the loss of, or damage to, trust property, whether\nby fire or otherwise; or\n(ii) any other risk or liability relating to trust property;\nand\n(b) the trustee receives an amount under the policy.\n(2) For subsection (1), it does not matter whether the insurance\npolicy was kept up—\n(a) under the trust or under any power, whether statutory or\notherwise; or\n(b) in performance of any obligation, whether statutory or\notherwise.\n(3) For the purposes of the trust, the amount received by the\ntrustee—\n(a) is to be treated as income to the extent it is consistent\nwith the purpose for which the insurance policy was\ntaken out; or\n(b) is to be treated as capital if, or to the extent, paragraph\n(a) does not apply.\n(4) The amount is to be held on trusts corresponding as nearly as\npossible with the trusts affecting the property in relation to\nwhich the amount was payable.\n(5) Also, the trustee may apply the amount, or part of the amount,\nin rebuilding, reinstating, replacing or repairing the property\nthat was lost or damaged.\n(6) However, if the amount has been paid into court, subsection\n(5) applies subject to any direction of the court.\n(7) This section does not prejudice or affect—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 85\nAuthorised by the Parliamentary Counsel\n[s 116]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(a) the rights of a person to require the amount or part of the\namount to be applied in rebuilding, reinstating,\nreplacing or repairing the property that was lost or\ndamaged; or\n(b) the rights of a mortgagee, lessor or lessee of the\nproperty, whether under an Act or otherwise.\n116 Deposit of documents for safe custody\n(1) A trustee may deposit a document held by the trustee relating\nto the trust, or to the trust property, with a relevant entity\nwhose business includes undertaking the safe custody of\ndocuments.\n(2) An amount payable for the deposit of the document is payable\nout of—\n(a) the income of the trust property; or\n(b) if there is no income or to the extent the income is\ninsufficient—the capital of the trust property.\n(3) In this section—\nrelevant entity means any of the following entities—\n(a) a law practice within the meaning of the Legal\nProfession Act 2007;\n(b) a financial institution;\n(c) a corporation.\n117 Valuations\n(1) A trustee may, for the purpose of giving effect to the trust or\nthe trust instrument or a provision of this Act or another Act,\nascertain and fix the value of—\n(a) the trust property; or\n(b) any property the trustee is authorised to buy or\notherwise acquire.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 86\nAuthorised by the Parliamentary Counsel\n[s 118]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(2) The trustee may ascertain and fix the value in any way the\ntrustee considers appropriate.\n(3) If the trustee is not personally qualified to ascertain the value\nof any property, the trustee—\n(a) must consult a properly qualified person, whether\nemployed by the trustee or not, about the value of the\nproperty; but\n(b) is not bound to accept a valuation made by the person.\n(4) The value fixed by the trustee under this section and in\naccordance with the trustee’s duties under part 5, divisions 2\nand 3 is binding on all persons beneficially interested in the\ntrust property.\n118 Audit\n(1) A trustee—\n(a) may have the accounts of the trust property examined or\naudited by an accountant; and\n(b) must, for that purpose, give the accountant the\ndocuments and information the accountant requires to\nconduct the examination or audit.\n(2) The costs of the examination or audit, including the\naccountant’s fee, are payable out of the capital or income of\nthe trust property, or partly out of the capital and partly out of\nthe income, as the trustee considers appropriate.\n(3) However, in the absence of any direction by the trustee to the\ncontrary in a special case—\n(a) costs attributable to capital are payable out of the\ncapital; and\n(b) costs attributable to income are payable out of the\nincome.\n(4) Despite subsection (2), if the trustee or 1 of the trustees is a\ntrustee corporation, the costs of the examination or audit are\npayable out of the trust property only if—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 87\nAuthorised by the Parliamentary Counsel\n[s 119]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(a) the examination or audit relates to a business forming\npart of the trust property; or\n(b) the court approves of the costs being paid out of the\ncapital or income of the trust property.\n119 Trustee may sue and be sued by themself in another\ncapacity\n(1) A trustee, in that capacity, may sue and be sued by themself in\nanother capacity, including the trustee’s personal capacity.\n(2) However, the trustee must obtain the directions of the court in\nwhich the proceeding is taken about the way the differing\ninterests are to be represented.\n120 Inquiries about beneficiaries\n(1) A trustee may make the inquiries, by way of advertisement or\notherwise, that the trustee considers necessary to ascertain the\nexistence or whereabouts of a beneficiary of the trust.\n(2) The costs, expenses and charges incurred by the trustee in\nmaking the inquiries about the beneficiary are payable out of\nthe legacy, amount or distributive share to which the\nbeneficiary is entitled.\n(3) Subsection (2) applies subject to an express contrary intention\nin the trust instrument.\n121 Exercise of trustee powers when particular beneficiaries\nare absolutely entitled\n(1) This section applies in relation to a trust other than a trust\ncreated by a court order.\n(2) A trustee may exercise the powers conferred under this part in\nrelation to the trust property even though—\n(a) all the beneficiaries are absolutely entitled to the trust\nproperty; and\n(b) each beneficiary is an adult—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30","sortOrder":8},{"sectionNumber":"retrieval-0010","sectionType":"document_chunk","heading":"Document excerpt 10","content":"Page 88\nAuthorised by the Parliamentary Counsel\n[s 122]\nTrusts Bill 2025\nPart 7 General powers of trustees\n(i) who has capacity for financial matters relating to\ntheir interest in the trust property; or\n(ii) for whom an administrator or attorney is\nauthorised, under their appointment as\nadministrator or attorney, to exercise power for\nfinancial matters relating to the beneficiary’s\ninterest in the trust property.\n(3) However, subsection (2) does not apply to the extent a power\nconferred under this part is expressly revoked by all the\nbeneficiaries, by written notice given to the trustee by—\n(a) each beneficiary mentioned in subsection (2)(b)(i); and\n(b) the administrator or attorney for each beneficiary\nmentioned in subsection (2)(b)(ii).\n122 Effect of conversion of land or personal property under\nstatutory power\n(1) This section applies if, as a result of an exercise of power\nunder this Act—\n(a) land is converted into personal property; or\n(b) personal property is converted into land.\n(2) The personal property or land must be held—\n(a) if, before conversion, the personal property or land was\nsubject to a trust—on a trust corresponding, as nearly as\nthe law and circumstances permit, with the trust\naffecting the personal property or land before\nconversion; or\n(b) if, before conversion, the personal property or land was\nnot subject to a trust—subject to the limitations,\nconditions, powers or directions corresponding, as\nnearly as the law and circumstances permit, with those\naffecting the personal property or land before\nconversion.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 89\nAuthorised by the Parliamentary Counsel\n[s 123]\nTrusts Bill 2025\nPart 8 Maintenance, education and advancement\nPart 8 Maintenance, education and\nadvancement\nDivision 1 Preliminary\n123 Definition for part\nIn this part—\nrelevant capital see section 128(2).\nDivision 2 Application of trust income\n124 Child beneficiaries—application of trust income for\nmaintenance etc.\n(1) This section applies if, under a trust, a trustee holds trust\nproperty for a beneficiary who is a child.\n(2) The trustee may pay all or part of the income of the trust\nproperty to the beneficiary’s guardian (if any), or otherwise\napply all or part of the income, for or towards the\nbeneficiary’s maintenance, education or advancement\n(including past maintenance or education).\n(3) The power conferred under subsection (2) may be exercised—\n(a) whether the beneficiary’s interest in the trust property is\na vested interest or a contingent or future interest or is\nabsolute or liable to be divested; and\n(b) whether or not—\n(i) there is another fund that may be applied for the\nbeneficiary’s maintenance, education or\nadvancement; or\n(ii) there is another person who is bound by law to\nprovide for the beneficiary’s maintenance or\neducation.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n\nPage 90\nAuthorised by the Parliamentary Counsel\n[s 125]\nTrusts Bill 2025\nPart 8 Maintenance, education and advancement\n(4) However, despite subsection (3)(a), if the beneficiary’s\ninterest in the trust property is a contingent or future interest,\nthe power conferred under subsection (2) may be exercised\nonly if the interest includes the intermediate income of the\ntrust property.\n(5) For subsection (4) and without limiting the Succession Act\n1981, section 33H, a contingent or future interest in the trust\nproperty is taken, during the beneficiary’s minority and while\nthe beneficiary’s interest continues, to include the\nintermediate income if—\n(a) the interest would not, apart from this section, include\nthe intermediate income; and\n(b) the intermediate income is not expressly or specifically\ndisposed of, but would pass to some other person—\n(i) only because of an interest to which the person is\nentitled under a residuary or a general disposition\nin the trust instrument; or\n(ii) in the absence of a disposition mentioned in\nsubparagraph (i), on intestacy or as a resulting\ntrust.\n125 Child beneficiaries—investment and application of\nunexpended trust income\n(1) Subsection (2) applies if—\n(a) under section 124, a trustee may pay or apply the\nincome of trust property for or towards a beneficiary’s\nmaintenance, education or advancement; but\n(b) some or all of the income of the trust property (the\nremaining income) has not been paid or applied under\nsection 124 during the beneficiary’s minority and while\nthe beneficiary’s interest continues.\n(2) The trustee must—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 91\nAuthorised by the Parliamentary Counsel\n[s 125]\nTrusts Bill 2025\nPart 8 Maintenance, education and advancement\n(a) invest the remaining income (and the income achieved\nby investing the remaining income) in authorised\ninvestments; and\n(b) hold the amount of the authorised investments\n(including the income of the investments) as provided\nunder subsection (3) or (4).\n(3) The amount is to be held for the beneficiary absolutely if—\n(a) the beneficiary becomes an adult and the beneficiary’s\ninterest in the income during the beneficiary’s minority\nwas a vested interest; or\n(b) the beneficiary, on becoming an adult, is entitled to the\nproperty from which the income arose in fee simple,\nabsolute or determinable, or absolutely.\n(4) If neither subsection (3)(a) nor (b) applies—\n(a) the amount is to be held as an accretion to the capital of\nthe trust property from which the income arose; and\n(b) the amount and the capital are to form a single fund for\nall purposes.\n(5) For subsection (4), it does not matter whether the beneficiary\nhad a vested interest in the income.\n(6) Despite subsection (2)(b), the trustee may, at any time during\nthe beneficiary’s minority and while the beneficiary’s interest\ncontinues, pay or apply all or part of the amount of the\nauthorised investments (including the income of the\ninvestments) for or towards the beneficiary’s maintenance,\neducation or advancement under section 124 as if it were\nincome arising in the current year.\n(7) This section applies subject to a contrary intention in the trust\ninstrument.\n(8) In this section—\nauthorised investment means an investment of trust funds\nthat—\n(a) is authorised by the trust instrument; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 92\nAuthorised by the Parliamentary Counsel\n[s 126]\nTrusts Bill 2025\nPart 8 Maintenance, education and advancement\n(b) is made exercising a power of investment conferred\nunder part 6 or under an order made under section 179;\nor\n(c) is authorised by another Act or the general law.\n126 Adult beneficiaries—application of trust income for\nmaintenance etc.\n(1) This section applies if, under a trust—\n(a) a trustee holds trust property for a beneficiary who is an\nadult; and\n(b) the beneficiary has a contingent interest in the trust\nproperty; and\n(c) the beneficiary’s interest includes the intermediate\nincome of the trust property.\n(2) The trustee may pay all or part of the income of the trust\nproperty to the beneficiary, or otherwise apply all or part of\nthe income, for or towards the beneficiary’s maintenance,\neducation or advancement (including past maintenance or\neducation).\n127 Vested annuities\n(1) Sections 124 to 126 apply in relation to a vested annuity as\nif—\n(a) the annuity were the income of trust property that is held\nby a trustee on trust to pay the income of the trust\nproperty to the annuitant; and\n(b) the reference in sections 124(5) and 125(1)(b) and (6) to\nthe period during the beneficiary’s minority and while\nthe beneficiary’s interest continues were a reference to\nthe period for which the annuity is payable.\n(2) However, despite section 125(2)(b), the amount of the\nauthorised investments (including the income of the\ninvestments made during the period for which the annuity is\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 93\nAuthorised by the Parliamentary Counsel\n[s 128]\nTrusts Bill 2025\nPart 8 Maintenance, education and advancement\npayable) must be held on trust for the annuitant or the\nannuitant’s personal representative absolutely.\nDivision 3 Application of trust capital\n128 Application of trust capital for beneficiary’s maintenance\netc.\n(1) This section applies if, under a trust, a beneficiary is entitled\nto the capital, or any share of the capital, of the trust property.\n(2) The capital, or the share of the capital, to which the\nbeneficiary is entitled is the relevant capital.\n(3) Subject to section 129, the trustee may—\n(a) pay or apply amounts out of the relevant capital for or\ntowards the beneficiary’s maintenance, education or\nadvancement (including past maintenance or education);\nor\n(b) apply any part of the relevant capital for or towards any\nof those purposes.\n(4) The amounts of the relevant capital paid or applied and the\nvalue of the parts of the relevant capital applied must not, in\ntotal, be more than the greater of—\n(a) the prescribed amount under section 130; or\n(b) one-half the relevant capital.\nNote—\nSee, however, section 133 in relation to amounts that are taken not to\nhave been paid or applied.\n(5) However, the court may, on application, authorise the trustee\nto—\n(a) pay or apply greater amounts out of the relevant capital;\nor\n(b) apply part of the relevant capital of greater value.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 94\nAuthorised by the Parliamentary Counsel\n[s 129]\nTrusts Bill 2025\nPart 8 Maintenance, education and advancement\n(6) The power to pay or apply amounts, or apply part of the\nrelevant capital, may be exercised—\n(a) whether the beneficiary is entitled to the relevant capital\nabsolutely or contingently on the beneficiary reaching a\nstated age or on the happening of another event; or\n(b) whether the beneficiary is entitled in possession, in\nremainder or in reversion.\n(7) Also, it does not matter whether the beneficiary’s entitlement\nto the relevant capital—\n(a) is liable to be defeated by the exercise of a power of\nappointment or revocation; or\n(b) is liable to be diminished by an increase of the class to\nwhich the beneficiary belongs.\n129 Restriction on application of trust capital\n(1) A trustee may not pay or apply an amount out of relevant\ncapital, or apply a part of relevant capital, under section 128 if\nthe payment or application would prejudice a person who is\nentitled to a prior life interest or other interest, whether vested\nor contingent, in the amount or part.\n(2) However, the amount or part of the relevant capital may be\npaid or applied if—\n(a) the person whose interest may be prejudiced—\n(i) is an adult who has capacity for financial matters\nrelating to the payment or application; and\n(ii) consents in writing to the payment or application;\nor\n(b) the court, on application by the trustee, orders the\namount to be paid or applied or the part of the relevant\ncapital to be applied.\n130 Prescribed amount for application of trust capital\n(1) For section 128(4)(a), the prescribed amount is—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 95\nAuthorised by the Parliamentary Counsel\n[s 131]\nTrusts Bill 2025\nPart 8 Maintenance, education and advancement\n(a) for the initial period—$100,000; or\n(b) for the financial year starting immediately after the end\nof the initial period—$100,000 plus the CPI increase for\nthe financial year, rounded to the nearest dollar\n(rounding one-half upwards); or\n(c) for a later financial year—the prescribed amount for the\nprevious financial year plus the CPI increase for the\nlater financial year, rounded to the nearest dollar\n(rounding one-half upwards).\n(2) The chief executive must, before the start of each financial\nyear, publish on the department’s website the prescribed\namount for the financial year.\n(3) In this section—\nCPI means the all groups consumer price index for Brisbane\npublished by the Australian Bureau of Statistics.\nCPI increase, for a financial year, means the amount worked\nout by multiplying the prescribed amount for the previous\nfinancial year by the percentage increase, if any, in the CPI\nbetween—\n(a) the March quarter for the financial year before the\nprevious financial year; and\n(b) the March quarter for the previous financial year.\ninitial period means the period—\n(a) starting on the commencement of this section; and\n(b) ending on 30 June following the first anniversary of the\ncommencement of this section.\n131 Trust capital paid or applied to be brought into account\n(1) This section applies if an amount is paid or applied out of\nrelevant capital, or a part of relevant capital is applied, under\nthis division in relation to a beneficiary.\n(2) The amount paid or applied, or the value of the part applied,\nas the case may be, must be brought into account as part of the\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 96\nAuthorised by the Parliamentary Counsel\n[s 132]\nTrusts Bill 2025\nPart 8 Maintenance, education and advancement\nshare in the trust property to which the beneficiary is or\nbecomes absolutely or indefeasibly entitled.\nNote—\nSee, however, section 133 in relation to amounts that are taken not to\nhave been paid or applied.\nDivision 4 Imposition of conditions\n132 Trustee may impose conditions\n(1) This section applies to a trustee in exercising a power, whether\nunder division 2 or 3 or the trust instrument—\n(a) to pay or apply an amount of trust income for a\nbeneficiary’s maintenance, education or advancement\n(including past maintenance or advancement); or\n(b) to pay or apply an amount out of relevant capital, or\napply a part of relevant capital, for any of those\npurposes.\n(2) The trustee may impose conditions on the payment or\napplication of the amount or on the application of the part of\nthe relevant capital.\n(3) Without limiting subsection (2), a condition may require—\n(a) the repayment of—\n(i) the amount paid or applied; or\n(ii) the value of the part of the relevant capital applied;\nor\n(b) the payment of interest on the amount or value; or\n(c) the giving of security for the amount or value.\n(4) However, at any time after imposing a condition under\nsubsection (2), the trustee may—\n(a) waive all or part of the condition; or\n(b) release all or part of an obligation undertaken, or\nsecurity given, because of the condition.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 97\nAuthorised by the Parliamentary Counsel\n[s 133]\nTrusts Bill 2025\nPart 8 Maintenance, education and advancement\n(5) A trustee, when imposing a condition about giving security, is\nnot affected by any restriction on the investment of trust\nfunds, whether imposed under this Act or otherwise.\n133 Amounts repaid or recovered taken not to have been paid\nor applied\n(1) This section applies if a trustee, in exercising a power\nmentioned in section 132(1), imposes a condition under\nsection 132(2).\n(2) An amount repaid to the trustee, or recovered by the trustee, is\ntaken not to have been paid or applied by the trustee.\n134 Trustee not liable for losses\nA trustee is not liable for any loss that may be incurred in\nrelation to an amount of trust income or of relevant capital that\nis paid or applied, or a part of relevant capital that is applied,\nas mentioned in section 132(1) if the loss arises—\n(a) because of a failure to impose any or adequate\nconditions under section 132(2); or\n(b) without limiting paragraph (a), because of a failure to\ntake security or adequate security; or\n(c) because of a failure to take action to protect any security\ntaken; or\n(d) through the release or abandonment, without payment,\nof any security taken; or\n(e) from any other matter in relation to the conditions\nimposed or the waiver of any condition.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nPage 98\nAuthorised by the Parliamentary Counsel\n[s 135]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\nPart 9 Indemnities and protection of\ntrustees and other persons\nDivision 1 Distributing trust property\n135 Giving notice of intention to distribute\n(1) A trustee who intends to distribute trust property may give\nnotice of that intention by—\n(a) publishing, under subsection (2) or (3), a notice that\nrequires any person having any claim to, or against, the\ntrust property, whether as a creditor or beneficiary or\notherwise, to send particulars of the person’s claim to\nthe trustee by a stated day (the closing day) that is at\nleast 2 months after the day the notice is published; and\n(b) giving any other notices the court may direct.\n(2) If the notice under subsection (1)(a) is included in a notice of\nintention to apply for a grant, the notice of intention to apply\nfor a grant must be published in the way required under the\nUniform Civil Procedure Rules 1999.\n(3) If the notice under subsection (1)(a) is not included in a notice\nof intention to apply for a grant, the notice must be\npublished—\n(a) in a newspaper circulating throughout the State and sold\nat least once each week; or\n(b) on a website approved for the purpose—\n(i) by regulation; or\n(ii) by the Chief Justice, by notice published on the\nQueensland Courts website.\n(4) In this section—\nnotice of intention to apply for a grant means a notice, in the\napproved form under the Supreme Court of Queensland Act\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29","sortOrder":9},{"sectionNumber":"retrieval-0011","sectionType":"document_chunk","heading":"Document excerpt 11","content":"Page 99\nAuthorised by the Parliamentary Counsel\n[s 136]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\n1991, of intention to apply for a grant within the meaning of\nthe Succession Act 1981, section 5.\n136 Protection of trustee distributing after closing day\n(1) A trustee who gives notice under section 135 of the trustee’s\nintention to distribute trust property—\n(a) may, after the closing day, distribute the trust property\nhaving regard only to the claims, whether formal or not,\nof which the trustee has notice at the time of the\ndistribution; and\n(b) is not liable, in respect of any of the trust property\ndistributed after the closing day, to any person of whose\nclaim the trustee had no notice at the time of the\ndistribution.\n(2) If the trustee gives more than 1 notice under section 135, a\nreference in subsection (1) to the closing day is a reference to\nthe latest in time of the closing days stated in the notices.\n(3) For subsection (1)(a), it does not matter whether the trustee\nhas notice of a claim because the claim has been made in\nresponse to the notice given under section 135 or has\notherwise come to the trustee’s notice.\n(4) This section does not affect the right of any person to enforce\na remedy for the person’s claim against a person to whom a\ndistribution of any of the trust property has been made.\nNote—\nSee division 3 in relation to remedies for the wrongful distribution of\ntrust property.\n(5) Subsection (4) does not limit section 144 or any other defence\navailable, under an Act or at law or in equity, to the person to\nwhom the distribution is made.\n(6) In this section—\nclosing day see section 135(1)(a).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 100\nAuthorised by the Parliamentary Counsel\n[s 137]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\nDivision 2 Claims against trust property and\ntrustees\n137 Definitions for division\nIn this division—\nclaim, in relation to a trust—\n(a) means a claim—\n(i) to or against the trust property; or\n(ii) against the trustee personally because the trustee is\nunder a liability for which the trustee is entitled to\nreimbursement out of the trust property; but\n(b) does not include—\n(i) a claim under the Succession Act 1981, part 4; or\n(ii) a claim that is an application to revoke a grant of\nprobate or letters of administration; or\n(iii) a claim for which insurance is required to be, and\nis, maintained under an Act.\nclaimant means a person who makes a claim in relation to a\ntrust, whether as a creditor or beneficiary or otherwise.\npotential claimant means a person who may make a claim in\nrelation to a trust, whether as a creditor or beneficiary or\notherwise.\n138 Trustee may require claimant or potential claimant to\nstart proceeding\n(1) This section applies if a trustee does not accept a claim in\nrelation to the trust that has been made, or that the trustee has\nreason to believe may be made, by a claimant or potential\nclaimant.\n(2) The trustee may, by written notice given to the claimant or\npotential claimant, require the claimant or potential\nclaimant—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 101\nAuthorised by the Parliamentary Counsel\n[s 139]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\n(a) to start a proceeding to enforce the claim within 6\nmonths after the day the notice is given; and\n(b) to prosecute the proceeding with appropriate diligence.\n139 Trustee may apply to court for orders in relation to claim\n(1) The trustee may, not earlier than 6 months after the day notice\nis given to the claimant or potential claimant under section\n138, apply to the court for orders under section 140 in relation\nto the claim.\n(2) If the trustee has given notice under section 138 to 2 or more\nclaimants or potential claimants—\n(a) the trustee may seek orders against any or all of the\nclaimants or potential claimants in a single application;\nbut\n(b) the application may not be made earlier than 6 months\nafter the latest day notice is given under section 138 to\nany of the claimants or potential claimants.\n140 Court may make orders in relation to claim\n(1) This section applies if, on the hearing of an application made\nby the trustee under section 139, the claimant or potential\nclaimant does not satisfy the court that the claimant or\npotential claimant—\n(a) has started a proceeding to enforce the claim; and\n(b) is prosecuting the proceeding with appropriate\ndiligence.\n(2) The court may, by order—\n(a) extend the period for the claimant or potential claimant\nto start a proceeding to enforce the claim; or\n(b) bar the claim (including for all purposes); or\n(c) enable the trust property to be dealt with without regard\nto the claim.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 102\nAuthorised by the Parliamentary Counsel\n[s 141]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\n(3) Also, the court may make the other orders and give the\ndirections about the proceeding or the claim that the court\nconsiders appropriate, including, for example, any of the\nfollowing orders or directions—\n(a) an order or direction that a beneficiary of the trust be\ngiven notice of the application;\n(b) an order that a beneficiary of the trust be made a\nrespondent to the application;\n(c) an order imposing conditions;\n(d) an order about the costs of and incidental to the\napplication.\n(4) If, under section 139(2), the application seeks orders against 2\nor more claimants or potential claimants, the court may make\norders against any or all of the claimants or potential\nclaimants.\n141 Contesting trustee’s right to indemnity\n(1) This section applies if a beneficiary of the trust—\n(a) is not a party to an application made by the trustee under\nsection 139; and\n(b) is not made a respondent to the application by an order\nmade under section 140(3)(b).\n(2) An order made by the court on the application does not affect\nthe beneficiary’s right to contest a claim of the trustee to be\nentitled to indemnify themself out of the trust property.\nDivision 3 Remedies for wrongful distribution\nof trust property\n142 Definitions for division\nIn this division—\nclaimant see section 143(1)(b).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 103\nAuthorised by the Parliamentary Counsel\n[s 143]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\nrecipient see section 143(2).\n143 Enforcement of remedies for wrongful distribution\n(1) This section applies if—\n(a) a trustee wrongfully distributes trust property; and\n(b) a person (the claimant) suffers loss because of the\nwrongful distribution.\n(2) The claimant may enforce the same remedies against the\ntrustee, and against any person to whom the wrongful\ndistribution has been made (a recipient), as the claimant could\nenforce against a personal representative who has wrongfully\ndistributed the estate of a deceased person.\n(3) The claimant is not required to exhaust all remedies that may\nbe available to the claimant against the trustee before starting\na proceeding to enforce a remedy under subsection (2) against\na recipient.\n144 Effect of change of position of recipient\n(1) This section applies if—\n(a) the claimant starts a proceeding to enforce a remedy\nunder section 143(2) against a recipient; and\n(b) the recipient has received the distribution of the trust\nproperty in good faith; and\n(c) in the court’s opinion, the recipient has so changed the\nrecipient’s position in reliance on the propriety of the\ndistribution that it would be inequitable for the claimant\nto enforce the remedy against the recipient.\n(2) The court may make an order it considers to be just in all the\ncircumstances.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n\nPage 104\nAuthorised by the Parliamentary Counsel\n[s 145]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\n145 Other defences available to recipient not limited\nSection 144 does not limit any other defence that may be\navailable to the recipient under an Act, or at law or in equity.\nDivision 4 Particular protections for trustees\n146 Protection relating to notice when person is trustee of\nmore than 1 trust\n(1) This section applies to a trustee who is acting for more than 1\ntrust.\n(2) The trustee is not, in the absence of fraud, to be taken to have\nnotice of any matter in relation to a trust only because notice\nof the matter is, or was, given to the trustee when acting for\nanother trust.\n(3) In this section—\nmatter includes an instrument, a fact and a thing.\n147 Protection in relation to receipts\n(1) This section applies if—\n(a) a trustee signs a receipt for the payment of an amount or\nfor securities in order to comply with the requirements\nin relation to the giving of receipts by trustees; and\n(b) the trustee does not receive all, or any, of the amount or\nsecurities.\n(2) The trustee is accountable only for the amount or securities\nactually received by the trustee.\n148 Protection in relation to acts and omissions of other\npersons and losses\n(1) A trustee—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n\nPage 105\nAuthorised by the Parliamentary Counsel\n[s 149]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\n(a) is personally liable only for the trustee’s own acts or\nomissions; and\n(b) is not personally liable for the acts or omissions of—\n(i) another trustee; or\n(ii) an agent appointed by the trustee; or\n(iii) a financial institution, broker or other person with\nwhom any trust funds are deposited.\n(2) A trustee is not personally liable for the insufficiency or\ndeficiency of any security, or any other loss, unless the\ninsufficiency, deficiency or loss results from the trustee’s own\nbreach of trust.\nNote—\nSee section 81 for the court’s power to set off gains and losses.\n(3) This section applies subject to sections 52, 54, 77 and 98.\n149 Expenses reasonably incurred in administering trust\nA trustee may—\n(a) reimburse themself out of the trust property for the\nexpenses reasonably incurred in administering the trust;\nor\n(b) pay or discharge from the trust property the expenses\nreasonably incurred in administering the trust.\n150 Protection against liability for rents etc. under lease\n(1) This section applies if—\n(a) a trustee is, for any reason, liable in relation to—\n(i) any rent, covenant or agreement reserved by or\ncontained in a lease; or\n(ii) any indemnity given for any rent, covenant or\nagreement mentioned in subparagraph (i); and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 106\nAuthorised by the Parliamentary Counsel\n[s 150]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\n(b) before assigning the lease as mentioned in subsection\n(2), the trustee—\n(i) satisfies all liabilities under the lease that may have\naccrued, and been claimed, up to the date of the\nassignment; and\n(ii) if necessary, sets apart a fund that is enough to pay\nany future claim that may be made in relation to a\nfixed and ascertained amount that the lessee agreed\nto expend on the leased property (even if the time\nfor expending the amount has not arrived).\n(2) If the trustee assigns the lease to a person entitled to call for an\nassignment of the lease, the trustee—\n(a) is not required to appropriate any further amount from\nthe trust property to meet any future liability under the\nlease; and\n(b) may distribute the remaining trust property, other than\nany fund set apart as mentioned in subsection (1)(b)(ii),\nto the persons entitled to the trust property.\n(3) A trustee who acts under subsection (1)(b) and distributes the\nremaining trust property under subsection (2)(b) is not\npersonally liable for any later claim under the lease.\n(4) Nothing in this section affects the right of the lessor, or a\nperson deriving title under the lessor, to follow the trust\nproperty into the hands of the persons to whom the trust\nproperty has been distributed.\n(5) In this section—\nlease includes—\n(a) an agreement for a lease; and\n(b) an instrument giving an indemnity as mentioned in\nsubsection (1)(a)(ii) or varying the liabilities under the\nlease.\nperson entitled, to call for an assignment of a lease, includes a\npurchaser and a beneficiary under the will, or on the intestacy,\nof a deceased person.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n34\n\nPage 107\nAuthorised by the Parliamentary Counsel\n[s 151]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\nDivision 5 General\n151 Evidence about vacancy in trust or removal of trustee\n(1) This section applies in relation to a statement in an\ninstrument, under which a new trustee is appointed or a trustee\nis removed, about—\n(a) the circumstances in which the vacancy in the office of\ntrustee arose; or\n(b) the circumstances in which the trustee was removed.\n(2) The statement is conclusive evidence of the circumstances in\nfavour of any of the following persons acting in good faith—\n(a) a subsequent purchaser;\n(b) a debtor making payment to a new or continuing trustee\nof the trust;\n(c) the relevant registrar or another person registering or\notherwise recording a dealing with the trust property.\n(3) Also, the vesting of the trust property on the appointment of\nthe new trustee, or on the removal of the trustee, is as valid in\nfavour of a subsequent purchaser acting in good faith as it\nwould be if the statement were true.\n152 Protection for persons registering dealings with trust\nproperty\n(1) If a trustee has joined with another person in the sale of trust\nproperty, the relevant registrar or another person registering or\notherwise recording a dealing with the trust property is not,\nwhen registering or recording a dealing relating to the sale—\n(a) affected by notice of the circumstances of the\napportionment of the proceeds of sale; or\n(b) required to inquire into those circumstances.\n(2) Also, the relevant registrar is not required to inquire into the\nsurrender, by a trustee, of—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 108\nAuthorised by the Parliamentary Counsel\n[s 153]\nTrusts Bill 2025\nPart 9 Indemnities and protection of trustees and other persons\n(a) freehold or leasehold land; or\n(b) a water allocation or a lease of a water allocation.\n153 Protection for purchasers and mortgagees\nA purchaser or mortgagee paying or lending an amount to a\ntrustee on a sale or mortgage of trust property is not required\nto inquire into—\n(a) whether the amount is needed or is not more than is\nneeded; or\n(b) whether the trustee has power to effect the sale or\nmortgage; or\n(c) how the amount is applied.\n154 Receipts given by trustees\nIf a person pays an amount, or transfers or delivers property,\nto a trustee—\n(a) the written receipt of the trustee, or an agent appointed\nby the trustee to give receipts, is a sufficient discharge\nfor the amount or property; and\n(b) the person paying the amount or transferring or\ndelivering the property—\n(i) is not required to see to the application of the\namount or property; and\n(ii) is not answerable for any loss or misapplication of\nthe amount or property.\n155 Power of court to relieve trustee from personal liability\n(1) This section applies if it appears to the court that a trustee is,\nor may be, personally liable for a breach of trust.\n(2) The court may relieve the trustee either wholly or partly from\npersonal liability for the breach of trust if the court is\nsatisfied—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 109\nAuthorised by the Parliamentary Counsel\n[s 156]\nTrusts Bill 2025\nPart 10 Remuneration of trustees\n(a) the trustee has acted honestly and reasonably; and\n(b) the trustee ought fairly to be excused—\n(i) for the breach of trust; and\n(ii) for omitting to obtain the court’s directions in the\nmatter in which the trustee committed the breach\nof trust.\nNote—\nSee part 11, division 8 in relation to applications to the\ncourt for directions about matters relating to a trust.\n156 Power of court to make beneficiary indemnify for breach\nof trust\n(1) This section applies if a trustee commits a breach of trust at\nthe instigation or request, or with the written consent, of a\nbeneficiary.\n(2) The court may, if it considers it appropriate, make an order\nindemnifying the trustee, or a person claiming through the\ntrustee, out of the beneficiary’s interest in the trust property.\n157 Indemnity for acts done under court order\nEach order purporting to be made under this Act is a complete\nindemnity to a person for any act done under the order.\nPart 10 Remuneration of trustees\n158 Definitions for part\nIn this part—\nprofessional charges, of a professional trustee, means all\nusual professional or business charges for business transacted,\ntime expended, and acts done by the trustee or the trustee’s\nfirm, including acts that a trustee who is not in a profession or\nbusiness could have done personally.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28","sortOrder":10},{"sectionNumber":"retrieval-0012","sectionType":"document_chunk","heading":"Document excerpt 12","content":"Page 110\nAuthorised by the Parliamentary Counsel\n[s 159]\nTrusts Bill 2025\nPart 10 Remuneration of trustees\nprofessional trustee see section 59.\ntrustee includes a custodian trustee.\n159 Remuneration of professional trustees\n(1) A professional trustee for whom no benefit or remuneration is\nprovided in the trust instrument is entitled to charge, and to be\npaid out of the trust property, the trustee’s professional\ncharges in relation to the trust.\n(2) This section applies subject to an express contrary intention in\nthe trust instrument.\n160 Remuneration of trustees under court order\n(1) The court may, on application by a trustee (including a\nprofessional trustee), make an order authorising the trustee to\ncharge, and to be paid out of the trust property, the\nremuneration for the trustee’s services that the court considers\nappropriate if the circumstances appear to the court to justify\nthe charge.\n(2) If the application is made by a professional trustee, the court\nmay take into account any professional charges that have been\npaid out of the trust property to the trustee under section 159.\n161 Court may reduce excessive amounts for commission\nand professional charges\n(1) This section applies if the court considers that either of the\nfollowing amounts charged, or proposed to be charged, by a\ntrustee in respect of a trust is excessive—\n(a) an amount for commission;\n(b) an amount for professional charges.\n(2) The court may, on application by a person interested in the\ntrust or on its own initiative, review the amount and, on the\nreview, reduce the amount.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 111\nAuthorised by the Parliamentary Counsel\n[s 162]\nTrusts Bill 2025\nPart 11 Court powers\n(3) Subsection (2) applies despite any provision of an Act, or of\nthe trust instrument, authorising the charging of the amount.\n(4) However, this section does not apply in relation to a trustee\nthat is—\n(a) a licensed trustee company; or\n(b) the public trustee, to the extent an amount mentioned in\nsubsection (1)(a) or (b) is charged, or proposed to be\ncharged, by the public trustee as fees and charges under\nthe Public Trustee Act 1978, section 17.\n(5) In this section—\namount includes part of an amount.\nPart 11 Court powers\nDivision 1 Preliminary\n162 Definition for part\nIn this part—\npossessed, of property, includes—\n(a) entitled to the receipt of income of property; and\n(b) entitled to any vested estate (less than a life interest), at\nlaw or in equity, in possession or in expectancy, in land.\nDivision 2 Applications for orders\n163 Persons who may apply for particular orders relating to\ntrusts and trust property\n(1) This section applies to an application to the court for any of\nthe following orders in relation to a trust—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n\nPage 112\nAuthorised by the Parliamentary Counsel\n[s 164]\nTrusts Bill 2025\nPart 11 Court powers\n(a) an order under section 15 approving the appointment of\nmore than 4 trustees of the trust;\n(b) an order under section 166 appointing a new trustee;\n(c) an order under section 166 removing a trustee;\n(d) an order under section 168 disqualifying a person from\nbeing appointed as a trustee or removing the person as a\ntrustee;\n(e) an order under this Act relating to the trust property.\n(2) The application may be made by—\n(a) a trustee; or\n(b) a person applying to be appointed as a trustee; or\n(c) a person who is beneficially interested in the trust\nproperty; or\n(d) a person in whose favour a power to distribute the trust\nproperty may be exercised.\n(3) Also, a custodian trustee may apply for an order mentioned in\nsubsection (1)(b).\n(4) Subsection (2) does not apply if another provision of this Act\nprovides for the persons who may apply to the court in\nrelation to the particular matter.\n164 Persons who may apply for orders relating to interests in\nmortgaged property\n(1) This section applies to an application to the court for an order\nunder this Act in relation to an interest in any property subject\nto a mortgage.\n(2) The application may be made by—\n(a) a person who is beneficially interested in the property;\nor\n(b) a person who is interested in the amount secured by the\nmortgage.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 113\nAuthorised by the Parliamentary Counsel\n[s 165]\nTrusts Bill 2025\nPart 11 Court powers\n(3) Subsection (2) does not apply if another provision of this Act\nprovides for the persons who may apply to the court in\nrelation to the particular matter.\n165 Persons who may apply for orders relating to other\nproperty\n(1) This section applies to an application to the court for an order\nunder this Act in relation to property other than—\n(a) trust property; or\n(b) property subject to a mortgage.\n(2) The application may be made by a person with an interest in\nthe property.\n(3) Subsection (2) does not apply if another provision of this Act\nprovides for the persons who may apply to the court in\nrelation to the particular matter.\nDivision 3 Appointment and removal of\ntrustees and other office holders\nand related matters\n166 Power to appoint and remove trustees\n(1) This section applies if—\n(a) it is expedient for a new trustee of a trust to be appointed\nor for a trustee of a trust to be removed; and\n(b) it is inexpedient, difficult, impracticable or impossible\nfor the trustee to be appointed or removed without an\norder of the court.\n(2) The court may, on application or on its own initiative, make 1\nor more of the following orders in relation to the trust—\n(a) an order appointing a new trustee to replace a trustee\nwho has been removed;\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 114\nAuthorised by the Parliamentary Counsel\n[s 167]\nTrusts Bill 2025\nPart 11 Court powers\n(b) an order appointing a new trustee to be an additional\ntrustee or because there is no existing trustee;\n(c) an order removing a trustee.\n(3) Without limiting subsection (2)(a), the appointment of a new\ntrustee may be made to replace a trustee—\n(a) who wishes to be discharged; or\n(b) who appears to the court, for any reason, to be\nundesirable as a trustee.\n(4) If the court could appoint a new trustee under subsection\n(2)(a) to replace a trustee, the court may remove the trustee\nunder subsection (2)(c) without appointing a new trustee, but\nonly if, on the removal of the trustee, the trust will have at\nleast 1 trustee.\n(5) An order appointing a new trustee or removing a trustee (and\nany consequential vesting order or conveyance) has effect to\ndischarge a former trustee only to the extent the appointment\nor removal would have that effect if it were made under a\npower for that purpose contained in the trust instrument.\n(6) This section does not confer power to appoint or remove a\npersonal representative.\n167 Powers etc. of trustees appointed by court\n(1) A person appointed by an order made under section 166(2) as\nthe trustee of trust property has all the powers, authorities and\ndiscretions of, and may in all matters act as, a person who had\noriginally been appointed as a trustee of the trust property\nunder the trust instrument.\n(2) Subsection (1) applies in relation to the trustee both before\nand after the trust property is vested in the trustee.\n168 Power to disqualify persons from appointment as\ntrustees and remove them as trustees of other trusts\n(1) This section applies if the court—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 115\nAuthorised by the Parliamentary Counsel\n[s 169]\nTrusts Bill 2025\nPart 11 Court powers\n(a) removes a person as trustee of a trust under section\n166(2)(c); and\n(b) is satisfied—\n(i) the person has committed 1 or more breaches of\ntrust; and\n(ii) the nature and seriousness of the breaches make\nthe person unfit to act as a trustee.\n(2) The court may, by order—\n(a) disqualify the person from being appointed as a trustee\nof any trust for a stated period; and\n(b) if the person is a trustee of another trust when an order is\nmade under paragraph (a)—remove the person as trustee\nof the other trust.\n169 Power to appoint and remove particular office holders\n(1) This section applies if—\n(a) it is expedient for a person to be appointed to, or\nremoved from, a relevant office in relation to a trust; and\n(b) it is inexpedient, difficult, impracticable or impossible\nfor the person to be appointed or removed without an\norder of the court.\n(2) The court may, on application or on its own initiative, by\norder—\n(a) appoint a person to the relevant office; or\n(b) remove a person from the relevant office; or\n(c) remove a person from the relevant office and appoint\nanother person to the office.\n(3) The application may be made by—\n(a) a trustee of the trust; or\n(b) the person who holds the relevant office; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 116\nAuthorised by the Parliamentary Counsel\n[s 170]\nTrusts Bill 2025\nPart 11 Court powers\n(c) a person who is beneficially interested in the trust\nproperty; or\n(d) a person in whose favour a power to distribute the trust\nproperty may be exercised.\n(4) A person may be appointed to, or removed from, the relevant\noffice for any reason a person may be appointed, or removed,\nas a trustee of a trust under section 166.\n(5) In this section—\nrelevant office, in relation to a trust, means an office created\nunder the trust instrument, other than the office of trustee,\nunder which a person holding the office—\n(a) may exercise a power in relation to the trust or the trust\nproperty; and\n(b) must act in a fiduciary capacity in exercising the power.\nDivision 4 Vesting orders and related matters\n170 Application of division\n(1) This division applies if—\n(a) a new trustee is appointed under the trust instrument,\nunder this Act or another Act, or otherwise by the court;\nor\n(b) a trustee—\n(i) is replaced or removed, or is discharged under\nsection 30; or\n(ii) is under a legal incapacity; or\n(iii) is out of the court’s jurisdiction; or\n(iv) can not be found; or\n(c) a trustee that is a corporation—\n(i) stops carrying on business; or\n(ii) becomes a Chapter 5 body corporate; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 117\nAuthorised by the Parliamentary Counsel\n[s 170]\nTrusts Bill 2025\nPart 11 Court powers\n(iii) is deregistered or otherwise ceases to exist; or\n(d) a trustee, who is directed in writing to do so by a person\nabsolutely entitled to the trust property or to the\ndividends or income of the trust property, neglects or\nrefuses, within 28 days after the day the trustee is given\nthe direction, to—\n(i) convey the trust property; or\n(ii) receive the dividends or income of the trust\nproperty; or\n(iii) sue for or recover the trust property; or\n(e) the last continuing trustee of a trust has died and 1 of the\nfollowing applies—\n(i) there is no personal representative of the last\ncontinuing trustee;\n(ii) the personal representative of the last continuing\ntrustee can not be found;\n(iii) it is uncertain who the personal representative of\nthe last continuing trustee is; or\n(f) it is uncertain whether the last trustee of a trust known to\nhave been entitled to, or possessed of, any trust property\nis alive or dead; or\n(g) in circumstances where 2 or more trustees were jointly\nentitled to, or possessed of, trust property, it is uncertain\nwho the survivor of the trustees was; or\n(h) trust property is vested in a trustee and it appears to the\ncourt to be expedient to make a vesting order.\n(2) Also, this division applies if—\n(a) a person, who is required to do so under a court order,\nneglects or refuses to—\n(i) convey any property; or\n(ii) receive the dividends or income of any property; or\n(iii) sue for or recover any property; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 118\nAuthorised by the Parliamentary Counsel\n[s 171]\nTrusts Bill 2025\nPart 11 Court powers\n(b) a deceased person was entitled to, or possessed of, any\nproperty and the deceased person’s personal\nrepresentative is under a legal incapacity; or\n(c) any property is subject to a contingent right in an unborn\nperson, or in unborn persons of a class, who, on coming\ninto existence, would become entitled to, or possessed\nof, the property under a trust; or\n(d) in a proceeding, the court—\n(i) directs the sale or mortgage, or the release of a\nmortgage, of land; or\n(ii) makes an order for the specific performance of a\ncontract concerning land; or\n(e) a person entitled to, or possessed of, property by way of\nmortgage is under a legal incapacity.\n(3) For this section, a trustee is entitled to, or possessed of, trust\nproperty even if—\n(a) the trust property is held jointly with another person; or\n(b) the trustee is entitled to, or possessed of, the trust\nproperty by way of mortgage or otherwise.\n171 Court may make vesting and other orders etc.\n(1) The court may, on application or on its own initiative, make an\norder (a vesting order) vesting the trust property or other\nproperty in any person in any way and for any estate or\ninterest that the court directs.\n(2) Subsection (1) applies subject to section 172.\n(3) As well as, or instead of, making a vesting order in relation to\nthe trust property or other property, the court may make any\ndeclaration or order, or give any direction, in relation to the\nproperty that it considers appropriate, including—\n(a) for the purpose of making a vesting order under\nsubsection (1), a declaration that a person is a trustee,\nwithin the meaning of this Act, of the property; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 119\nAuthorised by the Parliamentary Counsel\n[s 172]\nTrusts Bill 2025\nPart 11 Court powers\n(b) an order releasing a contingent right or disposing of a\ncontingent right to any person as the court directs; and\n(c) an order appointing a person to convey the property or\nrelease a contingent right.\n(4) If the court makes a vesting order in relation to the trust\nproperty or other property, it may also make a declaration, or\ngive a direction, about the way the right to transfer the\nproperty is to be exercised.\n(5) In this section—\ncontingent right, in relation to property, includes—\n(a) a contingent right of an unborn person, or of unborn\npersons of a class, who, on coming into existence,\nwould become entitled to, or possessed of, the property\nunder a trust; and\n(b) the estate or interest in the property that an unborn\nperson, or unborn persons of a class, mentioned in\nparagraph (a) would become entitled to, or possessed of,\non coming into existence.\n172 Restrictions on vesting orders in particular\ncircumstances\n(1) If a vesting order is to be made consequential on the\nappointment of a new trustee, including on the appointment of\na new trustee to replace a trustee, the trust property must be\nvested in the persons who, on the appointment, are the\ntrustees.\n(2) If a vesting order is to be made consequential on the removal\nof 1 or more of a number of trustees without being replaced,\nor on the discharge of a trustee under section 30, the trust\nproperty must be vested in the continuing trustees alone.\n(3) A vesting order may vest shares that are not fully paid up in a\nperson only if—\n(a) the person applies for the order or consents to the order\nbeing made; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 120\nAuthorised by the Parliamentary Counsel\n[s 173]\nTrusts Bill 2025\nPart 11 Court powers\n(b) the court directs that the person’s consent be dispensed\nwith.\n173 Effect of vesting and other orders\n(1) A vesting order—\n(a) divests the trust property or other property to which the\norder relates from the persons in whom the property was\nvested immediately before the order was made; and\n(b) without any conveyance, transfer or assignment, vests\nthe property in—\n(i) the person named, as trustee or otherwise, in the\norder; or\n(ii) if more than 1 person is named, as trustee or\notherwise, in the order—the persons named in the\norder, as joint tenants.\n(2) However, to the extent the divesting and vesting of the trust\nproperty or other property have effect only if notified,\nregistered or recorded under the requirements of another Act\nor of a law of another State or the Commonwealth, the\ndivesting and vesting of the property are subject to the\nrequirements of the other Act or law.\n(3) If an order is made under section 171(3)(c), a conveyance or\nrelease by the appointed person in accordance with the order\nhas the same effect as a vesting order.\n174 Transfer of property under vesting order\n(1) The person in whom the trust property or other property is\nvested under a vesting order must, for the purpose of effecting\nthe notification, registration or recording of the order under a\nrequirement mentioned in section 173(2)—\n(a) produce the order to the relevant registrar or other\nperson having the function of receiving notification of,\nor registering or recording, the vesting; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31","sortOrder":11},{"sectionNumber":"retrieval-0013","sectionType":"document_chunk","heading":"Document excerpt 13","content":"Page 121\nAuthorised by the Parliamentary Counsel\n[s 175]\nTrusts Bill 2025\nPart 11 Court powers\n(b) do any other act that is required by the relevant registrar\nor other person for that purpose.\n(2) The vesting order, or the notification, registration or recording\nof the order, does not have effect as a breach of covenant or\ncondition, or give rise to the forfeiture, of any lease or\nagreement for lease or other property.\n(3) If the consent of a person is needed to the conveyance,\ntransfer or assignment of any property—\n(a) the vesting of the property under a vesting order is\nsubject to the consent, unless the order otherwise\nprovides; but\n(b) the consent may be obtained after the making of the\nvesting order by the persons named in the order.\n175 Powers etc. of person named in vesting order as trustee\n(1) This section applies if a vesting order vests property in a\nperson as trustee.\n(2) The person named in the vesting order as trustee has all the\npowers, authorities and discretions of, and may in all matters\nact as, a person who had originally been appointed as a trustee\nof the trust property under the trust instrument.\n(3) However, the court may—\n(a) under the vesting order, limit the trustee’s powers as the\ncourt considers appropriate; or\n(b) under section 179 or 183, enlarge the trustee’s powers as\nthe court considers appropriate.\n176 Circumstances relating to validity of vesting and other\norders etc.\n(1) This section applies in relation to a vesting order or any other\norder, declaration or direction made, or given, under section\n171.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 122\nAuthorised by the Parliamentary Counsel\n[s 177]\nTrusts Bill 2025\nPart 11 Court powers\n(2) The fact that the order, declaration or direction is founded, or\npurports to be founded, on an allegation of the existence of a\ncircumstance mentioned in section 170(1) or (2) is conclusive\nevidence of the circumstance alleged in any court on any\nquestion about the validity of the order, declaration or\ndirection.\n(3) However, if the order, declaration or direction has been\nimproperly obtained, nothing in this Act prevents the court\nfrom—\n(a) in the case of a vesting order—directing a reconveyance\nof the property the subject of the order; or\n(b) making an order in relation to the payment of costs\noccasioned by the improper obtaining of the order,\ndeclaration or direction; or\n(c) making a further order or declaration, or giving a further\ndirection, under section 171.\nDivision 5 Orders in relation to property and\nclaims of children\n177 Court may make orders in relation to property or claim of\nchild\n(1) If a child is beneficially entitled to property of which there is\nno trustee, the court may, on application by the child’s\nlitigation guardian, make an order, on the terms the court\nconsiders appropriate, appointing the litigation guardian or\nanother person the court considers appropriate—\n(a) to deal with the property; or\n(b) to exercise in relation to the property the powers\nconferred on a trustee under this Act.\n(2) If a child has a claim to property, the court may, on application\nby the child’s litigation guardian, make an order appointing\nthe litigation guardian or another person the court considers\nappropriate to settle or compromise the claim.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 123\nAuthorised by the Parliamentary Counsel\n[s 178]\nTrusts Bill 2025\nPart 11 Court powers\n(3) However, subsection (2) does not apply if the settlement or\ncompromise may be sanctioned under the Public Trustee Act\n1978, section 59 by a court or the public trustee.\n(4) The court must not make an order under subsection (1) or (2)\nunless it appears to the court that the order is for the benefit\nof—\n(a) the child; or\n(b) the child and another person.\n(5) An act done under an order made under this section is binding\non the child.\n(6) In this section—\ndeal, with property, includes sell, convey, lease, mortgage,\ncharge and sue for and recover the property.\nDivision 6 Conferral of additional management\npowers\n178 Definition for division\nIn this division—\nmanagement power, in relation to a trust, means any power\nfor the management or administration of the trust or the trust\nproperty, including, for example—\n(a) the power to surrender, release or otherwise dispose of\nthe trust property; and\n(b) the power to retain the trust property; and\n(c) the power to buy, invest in or acquire trust property or\nengage in another transaction for the trust; and\n(d) the power to expend an amount out of trust funds.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n\nPage 124\nAuthorised by the Parliamentary Counsel\n[s 179]\nTrusts Bill 2025\nPart 11 Court powers\n179 Court may confer additional management powers\n(1) This section applies in relation to a trust if the court is\nsatisfied—\n(a) the exercise of a particular management power—\n(i) would be expedient in the management or\nadministration of the trust property; or\n(ii) would be in the best interests of the persons, or the\nmajority of the persons, beneficially interested in\nthe trust property; and\n(b) the management power can not be exercised because—\n(i) it is inexpedient, difficult or impracticable to\nexercise the power without a court order; or\n(ii) the trustee does not have the management power\nunder this Act, the trust instrument or otherwise.\n(2) For subsection (1)(b)(ii), it does not matter that the trustee\ndoes not have the particular management power because—\n(a) this Act allows the power, which would otherwise be\nconferred on the trustee under this Act, to be excluded\nor modified under the trust instrument; and\n(b) the trust instrument excludes or modifies the power.\nNote—\nSee section 82(3) in relation to the powers that may be excluded or\nmodified under the trust instrument.\n(3) The court may, by order, confer the management power on the\ntrustee, either generally or in a particular matter, and on the\nterms and subject to any conditions the court considers\nappropriate.\n(4) Without limiting subsection (3), the court may direct—\n(a) how an amount authorised to be expended is to be paid;\nand\n(b) how the costs of any transaction are to be borne; and\n(c) the extent to which the amount or the costs are to be\napportioned between capital and income.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 125\nAuthorised by the Parliamentary Counsel\n[s 180]\nTrusts Bill 2025\nPart 11 Court powers\n180 Court may revoke or vary order\n(1) The court may, by further order, revoke or vary an order made\nunder section 179.\n(2) The revocation or variation of an order made under section\n179 does not affect any act or thing done in reliance on the\norder before the person doing the act or thing became aware\nof the application to the court to revoke or vary the order.\n181 Persons who may apply for order\nAn application for an order under section 179 or 180 in\nrelation to a trust may be made by—\n(a) any trustee of the trust; or\n(b) any person beneficially interested in the trust property.\nDivision 7 Variations of trusts\n182 Meaning of protective trust\n(1) For this division, a trust is a protective trust if, under the trust,\nincome is, without prejudice to any prior interest—\n(a) held on trust for the benefit of a person (the principal\nbeneficiary)—\n(i) for the period of the principal beneficiary’s life or a\nlesser period (in either case the trust period); or\n(ii) until the trust (the primary trust) sooner fails or\ndetermines because of an intervening event; and\n(b) if the primary trust fails or determines during the trust\nperiod—held on trust for the remainder of the trust\nperiod to be applied, as the trustee considers\nappropriate, for the maintenance, education or\nadvancement (including past maintenance or education)\nof 1 or more of the following persons—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 126\nAuthorised by the Parliamentary Counsel\n[s 183]\nTrusts Bill 2025\nPart 11 Court powers\n(i) the principal beneficiary and the principal\nbeneficiary’s spouse or issue;\n(ii) if the principal beneficiary has no spouse or\nissue—the principal beneficiary and the persons\nwho would, if the principal beneficiary were dead,\nbe entitled to the trust property or the income of\nthe trust property.\n(2) For this division, a trust is also a protective trust if it has a\nsimilar effect to a trust mentioned in subsection (1).\n(3) In this section—\nincome includes an annuity and any other periodic payment of\nincome.\nintervening event, in relation to a primary trust, means an\nevent provided for under the trust instrument that, if it\nhappens, results in—\n(a) the principal beneficiary of the primary trust being\ndeprived of the right to receive the income, or part of the\nincome, of the trust; and\n(b) the consequent failure or determination of the primary\ntrust.\n183 Power of court to authorise variations of trust\n(1) The court may make an order under this section approving an\narrangement in relation to a trust for any of the following\npersons (each a restricted beneficiary)—\n(a) a person under a legal incapacity who has an interest\nunder the trust, whether directly or indirectly and\nwhether vested or contingent;\n(b) a person (whether ascertained or not) who may become\nentitled, directly or indirectly, to an interest under the\ntrust at a future date or on the happening of a future\nevent (each later in time than the date of an application\nto the court under this section) because the person\nbecomes—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 127\nAuthorised by the Parliamentary Counsel\n[s 183]\nTrusts Bill 2025\nPart 11 Court powers\n(i) a person of a particular description; or\n(ii) a member of a particular class of persons;\n(c) an unborn person;\n(d) a person who, if a protective trust failed or determined,\nwould be a member of the class of persons mentioned in\nsection 182(1)(b)(i) or (ii).\n(2) An arrangement may—\n(a) vary or revoke all or any of the trusts; or\n(b) enlarge the powers of the trustees to manage or\nadminister any of the trust property.\n(3) An arrangement may be approved only if carrying out the\narrangement would be for the benefit of the restricted\nbeneficiary.\n(4) However, subsection (3) does not apply if the restricted\nbeneficiary is—\n(a) an unascertained person whose entitlement is dependent\non a future event that the court is satisfied is unlikely to\nhappen; or\n(b) a person mentioned in subsection (1)(d).\n(5) An order approving an arrangement may be made regardless\nof—\n(a) who has proposed the arrangement; or\n(b) whether there is any other person beneficially interested\nin the trust property who is capable of assenting to the\narrangement.\n(6) Notice of an application to the court for an order under this\nsection must be given to all persons as the court directs.\n(7) This section does not limit the court’s powers under division\n6.\n(8) This section does not apply in relation to a trust affecting\nproperty settled by an Act.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 128\nAuthorised by the Parliamentary Counsel\n[s 184]\nTrusts Bill 2025\nPart 11 Court powers\nDivision 8 Applications for directions\n184 Court may give directions about particular matters\n(1) The court may, on application by a trustee, give the directions\nit considers appropriate about—\n(a) the trust property; or\n(b) the management or administration of the trust property;\nor\n(c) the exercise of any power or discretion vested in the\ntrustee.\n(2) An application for directions under subsection (1) must be\nserved on each person having an interest in the application, or\non any of them as the court considers expedient.\n185 Protection of trustee acting under court directions\n(1) If a trustee acts in accordance with a direction of the court\ngiven under section 184, the trustee is taken, in relation to the\ntrustee’s own liability, to have discharged the trustee’s duty as\ntrustee in the matter the subject of the direction.\n(2) Subsection (1) applies even if the direction is later varied or\nset aside.\n(3) However, this section does not protect the trustee from\nliability for an act done under the direction if, in obtaining the\ndirection, or in agreeing (either expressly or impliedly) with\nthe court in making the order giving the direction, the\ntrustee—\n(a) commits a fraud; or\n(b) wilfully conceals a material matter; or\n(c) misrepresents a material matter.\n(4) In this section—\nvaried or set aside includes invalidated, overruled and\ndeclared to be of no effect.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 129\nAuthorised by the Parliamentary Counsel\n[s 186]\nTrusts Bill 2025\nPart 11 Court powers\nDivision 9 Reviews of decisions and directions\nfor apprehended decisions\n186 Definitions for division\nIn this division—\napprehended decision see section 187(1)(b)(ii).\nrelevant decision see section 187(1)(b)(i).\nrelevant power, in relation to a trustee or another person,\nmeans a power in relation to trust property or a trust that—\n(a) is conferred on the trustee or other person under this Act\nor otherwise; and\n(b) must be exercised in a fiduciary capacity.\n187 Application for review or directions\n(1) This section applies if—\n(a) a person has—\n(i) an interest, whether direct or indirect or vested or\ncontingent, in trust property; or\n(ii) a right of proper administration in relation to a\ntrust; and\n(b) the person—\n(i) is aggrieved by an act, omission or decision (each a\nrelevant decision) of a trustee or another person in\nthe exercise of a relevant power; or\n(ii) has reasonable grounds to apprehend an act,\nomission or decision (each an apprehended\ndecision) of a trustee or another person, in the\nexercise of a relevant power, by which the person\nwill be aggrieved.\n(2) The person may apply to the court, on a ground mentioned in\nsection 188(1)(a) or (b), to—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 130\nAuthorised by the Parliamentary Counsel\n[s 188]\nTrusts Bill 2025\nPart 11 Court powers\n(a) review the relevant decision; or\n(b) give directions in relation to the apprehended decision.\n188 Grounds for review or directions\n(1) The court may review the relevant decision, or give directions\nin relation to the apprehended decision, on the ground—\n(a) the relevant decision or apprehended decision was not,\nor would not be, an appropriate exercise of the relevant\npower by the trustee or other person; or\n(b) without limiting paragraph (a), the relevant power was,\nor would be, exercised by the trustee or other person—\n(i) in bad faith; or\n(ii) without real or genuine consideration; or\n(iii) contrary to the purposes of the trust.\n(2) Also, the court may require the trustee or other person to\nappear before it to substantiate and uphold the grounds of the\nrelevant decision or apprehended decision.\n189 Orders and directions\n(1) The court may, on the application, make the orders and give\nthe directions it considers appropriate, including an order\nabout the costs of the application.\n(2) However, an order must not—\n(a) disturb a distribution of the trust property, made without\nbreach of trust, before the trustee or other person\nbecame aware of the making of the application to the\ncourt; or\n(b) affect a right acquired by a person in good faith and for\nvaluable consideration.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n\nPage 131\nAuthorised by the Parliamentary Counsel\n[s 190]\nTrusts Bill 2025\nPart 11 Court powers\nDivision 10 Other matters\n190 Court may decide proceeding in absence of trustee\n(1) This section applies if—\n(a) a person is, as trustee, a defendant in a proceeding; and\n(b) the court is satisfied—\n(i) a diligent search has been made for the person; and\n(ii) the person can not be found.\n(2) The court may—\n(a) decide the proceeding in the absence of service on the\nperson; and\n(b) give judgment against the person, as trustee, as if the\nperson had been properly served.\n(3) Subject to section 191, judgment given against the person, as\ntrustee, does not affect any interest the person may have in the\nmatters in question in the proceeding in another capacity.\n191 Court may appoint representative or make orders in\nabsence of party or interested person\n(1) This section applies if, at the time of the hearing of a\nproceeding in relation to a trust, a party to the proceeding or\nan interested person in relation to the proceeding—\n(a) is not within the jurisdiction; or\n(b) is under a legal incapacity; or\n(c) can not be found; or\n(d) is unborn; or\n(e) is not capable of being identified or ascertained.\n(2) The court may—\n(a) make an order appointing a person to represent the party\nor interested person; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28","sortOrder":12},{"sectionNumber":"retrieval-0014","sectionType":"document_chunk","heading":"Document excerpt 14","content":"Page 132\nAuthorised by the Parliamentary Counsel\n[s 192]\nTrusts Bill 2025\nPart 11 Court powers\n(b) proceed in the absence of the party or interested person.\n(3) An order made in the proceeding is binding on the party or\ninterested person.\n(4) In this section—\ninterested person, in relation to a proceeding, means a person,\nor persons of a class, who the court considers—\n(a) should be made a party or parties to the proceeding; or\n(b) should be given an opportunity to attend and be heard in\nthe proceeding.\n192 Court may charge costs on property\nThe court may order that the costs of an application under this\nAct—\n(a) be paid or raised out of—\n(i) the property to which the application relates; or\n(ii) the income of the property to which the application\nrelates; or\n(b) be borne and paid in the way and by the persons the\ncourt considers just.\n193 Payment of particular trust property into court by\ntrustees\n(1) This section applies in relation to trust property comprising\ntrust funds or securities.\n(2) A trustee who holds the trust property, or has the trust\nproperty under the trustee’s control, may pay the trust\nproperty into court.\n(3) The receipt of the proper officer of the court is a sufficient\ndischarge to the trustee for the payment of the trust property\ninto court.\n(4) Subject to rules of court, the trust property is to be dealt with\nas the court, by order, directs.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 133\nAuthorised by the Parliamentary Counsel\n[s 194]\nTrusts Bill 2025\nPart 12 Charitable trusts\n(5) If the trust property is held by, or is under the control of, more\nthat 1 trustee, the trust property may be paid into court on a\ndecision of a majority of the trustees.\n(6) If a majority of the trustees in whom the trust property is\nvested wish to pay the trust property into court but the\nagreement of the remaining trustees can not be obtained, the\ncourt may order—\n(a) that the trust property be paid into court without the\nagreement of the remaining trustees; and\n(b) if the trust property is deposited with a financial\ninstitution, broker or other depositary—that the trust\nproperty be paid or delivered to the majority of the\ntrustees for payment into court.\n(7) The payment or delivery of the trust property under an order\nmade under this section is as valid and effective as it would be\nif the payment or delivery were made by all of the trustees of\nthe trust property.\nPart 12 Charitable trusts\nDivision 1 Trusts containing non-charitable\nand invalid purposes\n194 Inclusion of non-charitable and invalid purpose not to\ninvalidate trust\n(1) This section applies if, under a trust, the purposes for which\nthe trust property is directed or allowed to be applied include,\nor could be taken to include, both a charitable purpose and a\nnon-charitable and invalid purpose.\n(2) The trust—\n(a) is not invalid only because of the inclusion of the\nnon-charitable and invalid purpose; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 134\nAuthorised by the Parliamentary Counsel\n[s 195]\nTrusts Bill 2025\nPart 12 Charitable trusts\n(b) is to be construed, and has effect, as if the trust did not\ndirect or allow the trust property to be applied for the\nnon-charitable and invalid purpose.\n(3) This section does not apply in relation to a trust declared\nbefore, or to the will of a testator dying before, 1 July 1973.\nDivision 2 Applications to court in relation to\ncharitable trusts\n195 Who may apply\nAny of the following entities may apply to the court for an\norder under this part in relation to a charitable trust—\n(a) the Attorney-General or a person authorised by the\nAttorney-General;\n(b) a trustee of the trust;\n(c) a person, or charity, interested in the proper\nadministration of the trust.\n196 Notice of application\n(1) The applicant must give written notice of the application to—\n(a) if the applicant is the Attorney-General or a person\nauthorised by the Attorney-General—the trustees of the\ncharitable trust; or\n(b) if the applicant is a trustee of the charitable trust—\n(i) the Attorney-General; and\n(ii) any trustee of the trust who is not a party to the\napplication; or\n(c) if the applicant is a person, or charity, interested in the\nproper administration of the charitable trust—\n(i) the Attorney-General; and\n(ii) the trustees of the trust.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 135\nAuthorised by the Parliamentary Counsel\n[s 197]\nTrusts Bill 2025\nPart 12 Charitable trusts\n(2) Also, the applicant must give written notice of the application\nto any other person or charity as directed by the court.\n197 Orders\nThe court may make any of the following orders in relation to\nthe charitable trust—\n(a) an order giving directions about the administration of\nthe trust;\n(b) an order requiring a trustee to carry out the trust;\n(c) an order requiring a trustee to comply with a scheme\napproved in relation to the trust, whether under this part\nor otherwise;\n(d) an order requiring a trustee to satisfy the trustee’s\nliability for a breach of the trust;\n(e) an order about costs;\n(f) an order about another matter that the court considers\njust.\nDivision 3 Schemes to allow trust property to\nbe applied cy pres\nSubdivision 1 Preliminary\n198 References to purposes of charitable trust\nA reference in this division to the purposes of a charitable\ntrust is a reference to—\n(a) if paragraph (b) does not apply—the original purposes\nof the trust; or\n(b) if the application of the trust property has been changed\nor regulated by a scheme approved under this division or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n\nPage 136\nAuthorised by the Parliamentary Counsel\n[s 199]\nTrusts Bill 2025\nPart 12 Charitable trusts\notherwise—the purposes for which the trust property\nmay, for the time being, be applied.\n199 Circumstances in which purposes of charitable trust may\nbe changed under sdiv 2 or 3\n(1) The circumstances in which the purposes of a charitable trust\nmay be changed under subdivision 2 or 3 to allow the trust\nproperty to be applied cy pres are as follows—\n(a) the purposes, wholly or in part—\n(i) have been, as far as may be, fulfilled; or\n(ii) can not be carried out; or\n(iii) can not be carried out according to the directions\ngiven and to the relevant considerations;\n(b) the purposes provide a use for part only of the trust\nproperty;\n(c) the trust property and other property that may be applied\nfor similar purposes—\n(i) can be more effectively used in conjunction; and\n(ii) can be appropriately applied to common purposes,\nhaving regard to the relevant considerations;\n(d) the purposes refer to—\n(i) an area that was, but has since ceased to be, a unit\nfor some other purpose; or\n(ii) a class of persons, or an area, that has ceased to be\nsuitable, having regard to the relevant\nconsiderations, or to be practical in administering\nthe trust;\n(e) the purposes, wholly or in part—\n(i) have been adequately provided for in other ways;\nor\n(ii) have ceased to be charitable; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 137\nAuthorised by the Parliamentary Counsel\n[s 200]\nTrusts Bill 2025\nPart 12 Charitable trusts\n(iii) have, in any other way, ceased to provide a suitable\nand effective way of using the trust property,\nhaving regard to the relevant considerations.\n(2) For subsection (1), the relevant considerations are—\n(a) the spirit of the trust; and\n(b) the social and economic conditions prevailing at the\ntime of the proposed change to the purposes of the trust.\n(3) Subsection (1) does not affect the conditions that, apart from\nthis Act, must be satisfied in order that property given for\ncharitable purposes may be applied cy pres, except to the\nextent the conditions require a failure of the purposes.\n200 Relationship with Charitable Funds Act 1958\nThis division does not affect the application of the Charitable\nFunds Act 1958 to the funds to which that Act applies.\nSubdivision 2 Approval of schemes by court\n201 Court may approve scheme\n(1) This section applies if—\n(a) an application is made to the court for an order\napproving a scheme to change the purposes of a\ncharitable trust to allow the trust property to be applied\ncy pres; and\nNote—\nSee section 195 for who may apply to the court.\n(b) the court is satisfied that 1 or more of the circumstances\nmentioned in section 199(1)(a) to (e) apply in relation to\nthe charitable trust.\n(2) The court may—\n(a) grant, or refuse to grant, the order; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 138\nAuthorised by the Parliamentary Counsel\n[s 202]\nTrusts Bill 2025\nPart 12 Charitable trusts\n(b) make any other order the court considers just.\nSubdivision 3 Approval of schemes by\nAttorney-General\n202 Trustee may apply to Attorney-General to approve\nscheme\n(1) This section applies if—\n(a) the trustee of a charitable trust seeks approval of a\nscheme to change the purposes of the trust to allow the\ntrust property to be applied cy pres; and\n(b) the purposes of the trust have not previously been\nchanged by the court under subdivision 2 or otherwise;\nand\n(c) the value of all the trust property does not exceed the\nmonetary limit under the District Court of Queensland\nAct 1967, section 68.\n(2) The trustee may, instead of applying to the court under\nsubdivision 2 or otherwise, apply to the Attorney-General to\napprove the scheme.\n(3) The application must—\n(a) be in the approved form; and\n(b) comply with any requirements prescribed by regulation\nfor the application; and\n(c) be accompanied by any fee prescribed by regulation for\nthe application.\n203 Requirements for public notice etc.\n(1) On receiving the application, the Attorney-General must, by\nwritten notice given to the trustee, require the trustee to give\npublic notice of the application in a stated way the\nAttorney-General considers appropriate.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 139\nAuthorised by the Parliamentary Counsel\n[s 204]\nTrusts Bill 2025\nPart 12 Charitable trusts\n(2) The trustee must give public notice of the application in the\nway stated in the notice given under subsection (1).\n(3) The public notice must—\n(a) invite persons and charities interested in the proper\nadministration of the charitable trust to make written\nsubmissions to the Attorney-General within a stated\nperiod of at least 28 days after the day the notice is\npublished; and\n(b) state how submissions to the Attorney-General may be\nmade.\n204 Powers of Attorney-General\n(1) The Attorney-General may do 1 or more of the following—\n(a) ask the trustee to provide any information, opinions or\nadvice the Attorney-General considers appropriate;\n(b) make any other investigations and inquiries the\nAttorney-General considers appropriate;\n(c) propose a variation of the scheme.\n(2) If the Attorney-General proposes a variation of the scheme,\nthe Attorney-General must consult the trustee on the proposed\nvariation.\n205 Deciding application\n(1) The Attorney-General must consider the application and\ndecide to—\n(a) approve the scheme; or\n(b) approve the scheme with a variation proposed under\nsection 204(1)(c); or\n(c) refuse to approve the scheme.\n(2) In making the decision, the Attorney-General must have\nregard to any written submissions made to the\nAttorney-General, within the submission period for the\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 140\nAuthorised by the Parliamentary Counsel\n[s 206]\nTrusts Bill 2025\nPart 12 Charitable trusts\napplication, by a person or charity interested in the proper\nadministration of the charitable trust.\n(3) The Attorney-General may decide to approve the scheme\nunder subsection (1)(a) or (b) only if satisfied that—\n(a) the value of all the trust property does not exceed the\nmonetary limit under the District Court of Queensland\nAct 1967, section 68; and\n(b) 1 or more of the circumstances mentioned in section\n199(1)(a) to (e) apply in relation to the charitable trust;\nand\n(c) the trustee has given public notice of the application in\ncompliance with section 203(2) and (3); and\n(d) for an approval under subsection (1)(b)—the trustee\nconsents to the variation of the scheme proposed by the\nAttorney-General.\n(4) The Attorney-General must decide to refuse to approve the\nscheme if the Attorney-General considers it more appropriate\nthat the application be dealt with by the court—\n(a) because of the contentious nature of the application; or\n(b) because a special question of law or fact arises; or\n(c) for another reason.\n(5) If the Attorney-General decides to refuse to approve the\nscheme, the Attorney-General must give the trustee written\nnotice of the decision, including the reasons for the decision.\n(6) In this section—\nsubmission period, for an application, means the period stated\nin the public notice given under section 203(3)(a) in relation\nto the application.\n206 Public notice of Attorney-General’s decision\n(1) The Attorney-General must give public notice, in the way the\nAttorney-General considers appropriate, of the\nAttorney-General’s decision in relation to the scheme.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 141\nAuthorised by the Parliamentary Counsel\n[s 207]\nTrusts Bill 2025\nPart 12 Charitable trusts\n(2) If the decision is to approve the scheme, the public notice\nmust also state—\n(a) that, under section 208, a person aggrieved by the\ndecision may, within 28 days after the day the notice is\ngiven, appeal against the decision to the Supreme Court;\nand\n(b) the day the scheme takes effect if an appeal against the\ndecision is not started under section 208.\n207 Effect of decision to approve scheme\n(1) If the Attorney-General decides under section 205 to approve\nthe scheme, the scheme takes effect on—\n(a) if an appeal against the decision is started under section\n208—the day the Supreme Court affirms the decision or\ndismisses the appeal; or\n(b) otherwise—the day that is 28 days after the day public\nnotice of the decision is given under section 206 or, if\nthe public notice states a later day, the later day.\n(2) On taking effect, the scheme is as effective, for all purposes,\nas it would be if it were approved by an order of the court\nunder subdivision 2.\n208 Appeal against decision to approve scheme\n(1) If the Attorney-General decides under section 205 to approve\nthe scheme, a person aggrieved by the decision may appeal\nagainst the decision to the Supreme Court.\n(2) The appeal must be started within 28 days after the day public\nnotice of the decision to approve the scheme is given under\nsection 206.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n\nPage 142\nAuthorised by the Parliamentary Counsel\n[s 209]\nTrusts Bill 2025\nPart 12 Charitable trusts\n209 Application for court approval not prevented by decision\nto refuse to approve scheme\nIf the Attorney-General decides under section 205 to refuse to\napprove the scheme, the decision does not prevent the trustee\napplying to the court under subdivision 2 or otherwise to\napprove the scheme.\n210 Register of approvals\n(1) The chief executive must keep a register of all schemes\napproved by the Attorney-General under section 205.\n(2) The register may—\n(a) be kept in any form, including electronically, that the\nchief executive decides; and\n(b) include any other information relating to a scheme\nmentioned in subsection (1) that the chief executive\nconsiders appropriate, including, for example, details of\nany appeal started under section 208 against the\nAttorney-General’s decision to approve the scheme.\n(3) The register must—\n(a) if kept electronically—be published on, or accessible\nthrough, the department’s website; or\n(b) otherwise—be available for public inspection, during\nthe department’s ordinary business hours, at a place\ndecided by the chief executive.\nSubdivision 4 Duty of trustees to make cy pres\napplications\n211 Duty of trustee in relation to application of property cy\npres\n(1) This section applies to the trustee of a charitable trust if the\ncircumstances permit the trust property to be applied cy pres.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 143\nAuthorised by the Parliamentary Counsel\n[s 212]\nTrusts Bill 2025\nPart 13 Gifts by particular trustees to charity-like government entities or other entities\n(2) The trustee has a duty to secure the effective use of the trust\nproperty for charitable purposes by making an appropriate\napplication under this division or otherwise to have the\nproperty applied cy pres.\nPart 13 Gifts by particular trustees to\ncharity-like government entities\nor other entities\n212 Definitions for part\nIn this part—\ndeductible gift recipient see the Income Tax Assessment Act\n1997 (Cwlth), section 30-227.\neligible recipient means—\n(a) in relation to any prescribed trust, a deductible gift\nrecipient that—\n(i) is mentioned in the Income Tax Assessment Act\n1997 (Cwlth), section 30-15, table, item 1; and\n(ii) is not a charity because of its connection with\ngovernment or being a government entity; and\n(iii) would be a charity if it did not have the connection\nwith government or were not a government entity;\nor\n(b) in relation to a prescribed trust that is a relevant trust, an\nentity that—\n(i) is not a charity or an eligible recipient under\nparagraph (a); and\n(ii) is prescribed by regulation.\ngovernment entity see the Charities Act 2013 (Cwlth), section\n4.\nprescribed power, for a prescribed trust, see sections 213(2)\nand 214(3).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30","sortOrder":13},{"sectionNumber":"retrieval-0015","sectionType":"document_chunk","heading":"Document excerpt 15","content":"Page 144\nAuthorised by the Parliamentary Counsel\n[s 213]\nTrusts Bill 2025\nPart 13 Gifts by particular trustees to charity-like government entities or other entities\nprescribed trust means—\n(a) an ancillary fund mentioned in the Income Tax\nAssessment Act 1997 (Cwlth), section 30-15, table, item\n2; or\n(b) a trust that—\n(i) is established and maintained for charitable or\nphilanthropic purposes; and\n(ii) is of a class prescribed by regulation.\nrelevant trust means a prescribed trust that is prescribed by\nregulation to be a relevant trust.\n213 Prescribed trust—trust instrument containing express\npower to give to eligible recipients\n(1) The trust instrument for a prescribed trust may include an\nexpress power for the trustees to provide money, property or\nbenefits—\n(a) to or for an eligible recipient; or\n(b) for the establishment of an eligible recipient.\n(2) An express power mentioned in subsection (1) that is included\nin the trust instrument for a prescribed trust is a prescribed\npower for the trust.\n214 Prescribed trust—trust instrument not containing\nexpress power to give to eligible recipients\n(1) This section applies if the trust instrument for a prescribed\ntrust does not include an express power mentioned in section\n213(1).\n(2) The trustees’ powers for the prescribed trust include the power\nto provide money, property or benefits—\n(a) to or for an eligible recipient; or\n(b) for the establishment of an eligible recipient.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 145\nAuthorised by the Parliamentary Counsel\n[s 215]\nTrusts Bill 2025\nPart 13 Gifts by particular trustees to charity-like government entities or other entities\n(3) The power conferred under subsection (2) in relation to the\nprescribed trust is a prescribed power for the trust.\n(4) Subsection (2)—\n(a) applies despite any provision to the contrary in the trust\ninstrument; but\n(b) does not apply in relation to a particular eligible\nrecipient, or to eligible recipients of a particular class, to\nthe extent there is an express prohibition in the trust\ninstrument against the provision by the trustees of\nmoney, property or benefits—\n(i) to or for that eligible recipient or eligible recipients\nof that class; or\n(ii) for the establishment of that eligible recipient or\neligible recipients of that class.\n215 Application of Act to prescribed trust\n(1) This Act applies in relation to a prescribed trust as if a\nprescribed power for the trust were a power exercisable for a\ncharitable purpose.\n(2) Without limiting subsection (1)—\n(a) neither the existence nor the exercise of the prescribed\npower affects the validity or status of the prescribed trust\nas a charitable trust; and\n(b) the prescribed trust is to be construed and given effect to\nas if—\n(i) the prescribed power were a power exercisable for\na charitable purpose; and\n(ii) any payment or application of the trust property or\nthe trust income, or of any part of either of them, in\nthe way allowed by the prescribed power were to\nor for a charitable purpose; and\n(c) neither the existence nor the exercise of the prescribed\npower affects the control of the prescribed trust by the\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 146\nAuthorised by the Parliamentary Counsel\n[s 216]\nTrusts Bill 2025\nPart 14 Statutory trustees\nSupreme Court in the exercise of the court’s general\njurisdiction in relation to charitable trusts; and\n(d) the jurisdiction mentioned in paragraph (c) extends to\nthe prescribed power as if the power were exercisable\nfor a charitable purpose.\nPart 14 Statutory trustees\n216 Restriction on exercise of particular powers by statutory\ntrustees\nDespite sections 82 and 83, a statutory trustee may exercise\nthe following powers in relation to the trust property only with\nthe approval of the court—\n(a) the powers mentioned in section 82(2)(a) and (c);\n(b) the power mentioned in section 82(2)(b), other than to\nthe extent the power is exercised to—\n(i) lease the trust property at a reasonable rent for a\nterm of not more than 1 year, or from year to year,\nor for a weekly, monthly or other periodic tenancy,\nor a tenancy at will; or\n(ii) renew a lease or tenancy mentioned in\nsubparagraph (i);\n(c) the power to vary the terms of a lease of the trust\nproperty or accept, or join with any other persons in\naccepting, the surrender of a lease of the trust property;\n(d) the powers mentioned in section 83.\n217 Rights, duties and protections of statutory trustees\n(1) In exercising a power under this Act, a statutory trustee—\n(a) has all the rights of a trustee; and\n(b) has all the duties and liabilities of a trustee for the\nparties beneficially interested in the trust property; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 147\nAuthorised by the Parliamentary Counsel\n[s 218]\nTrusts Bill 2025\nPart 15 Miscellaneous\n(c) is entitled to all the indemnities and protections to which\na trustee is entitled.\n(2) However, despite subsection (1)(b), a statutory trustee is not\nliable to impeachment of waste in relation to the exercise of a\npower under this Act.\n(3) This section applies subject to any order made, or direction\ngiven, by the court.\nPart 15 Miscellaneous\n218 Regulation-making power\nThe Governor in Council may make regulations under this\nAct.\n219 Approved forms\nThe chief executive may approve forms for use under this Act.\nPart 16 Repeal\n220 Repeal of Trusts Act 1973\nThe Trusts Act 1973, No. 24 is repealed.\nPart 17 Transitional and validation\nprovisions\nDivision 1 Preliminary\n221 Definition for part\nIn this part—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n\nPage 148\nAuthorised by the Parliamentary Counsel\n[s 222]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\nrepealed Act means the repealed Trusts Act 1973.\n222 Application of Acts Interpretation Act 1954\nThis part does not limit or otherwise affect the Acts\nInterpretation Act 1954, section 20 or 20A.\nDivision 2 Restrictions on appointment of\ntrustees\n223 Existing trustees not affected by particular restrictions\non appointment\nSection 13 does not apply to the appointment of a person as\ntrustee that took effect before the commencement.\n224 Existing trusts with more than 4 trustees\n(1) This section applies in relation to trust property if—\n(a) immediately before the commencement—\n(i) the repealed Act, section 11(1) applied in relation\nto the trust property; and\n(ii) there were more than 4 trustees of the trust\nproperty; and\n(b) on the commencement, section 14 would, but for this\nsection, apply to the trust.\n(2) Despite section 14, the repealed Act, section 11(1) continues\nto apply in relation to the trust property until the earlier of the\nfollowing to happen—\n(a) the number of trustees of the trust is reduced to 4 or less;\n(b) the court approves the appointment of more than 4\ntrustees of the trust under section 15.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nPage 149\nAuthorised by the Parliamentary Counsel\n[s 225]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n225 Existing certificates of Minister approving of more than 4\ntrustees\n(1) This section applies in relation to trust property if—\n(a) before the commencement, the Minister gave a\ncertificate mentioned in the repealed Act, section\n11(3)(b) approving of a greater number of trustees than\n4 in whom the trust property was, or was to be, vested;\nand\n(b) immediately before the commencement, the certificate\nwas still in effect.\n(2) Despite the repeal of the repealed Act, the certificate\ncontinues to have effect for the trust to approve the number of\ntrustees approved under the certificate.\n(3) Also, section 14 applies to the trust as if—\n(a) the reference in section 14(2) to 4 trustees were a\nreference to the number of trustees approved under the\ncertificate; and\n(b) a reference in section 14(3) to 4 persons were a\nreference to the number of persons that was approved\nunder the certificate as the number of trustees.\nDivision 3 Provisions for appointment,\ndischarge and removal of trustees\nand devolution of trusts\n226 Appointment of trustees—replacement of trustee in\nparticular circumstances happening or starting before\ncommencement\n(1) Section 20 applies in relation to a relevant trustee whether a\ncircumstance mentioned in section 20(1) happened, or started\nto apply, in relation to the relevant trustee before or after the\ncommencement.\n(2) Also, section 20 applies as if a reference in the section to a\nrelevant trustee included a reference to a trustee who—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 150\nAuthorised by the Parliamentary Counsel\n[s 227]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(a) was appointed as trustee before the commencement; and\n(b) is a child.\n227 Appointment of trustees—replacement of last continuing\ntrustee who is dead\n(1) Section 21 applies in relation to the last continuing trustee of a\ntrust who is dead, whether the death happened before or after\nthe commencement.\n(2) However, for a trust created before the commencement,\nsection 21(5) applies to the personal representative of the last\ncontinuing trustee as if the provision were not expressed to be\nsubject to a contrary intention in the trust instrument.\n228 Appointment of trustees—replacement of last continuing\ntrustee with impaired capacity or who is insolvent under\nadministration\nSections 22 and 23 apply only in relation to a trust created\nafter the commencement.\n229 Appointment of trustees—additional trustees\n(1) If a certificate mentioned in the repealed Act, section 11(3)(b)\ncontinues to have effect for a trust under section 225, section\n24 applies in relation to the trust as if the reference in section\n24(1)(a) to the number of trustees permitted for the trust under\nsection 14 were a reference to the number of trustees\napproved for the trust under the certificate.\n(2) For a trust created before the commencement, section 24(4)\napplies to an appointor for the trust as if the provision were\nnot expressed to be subject to a contrary intention in the trust\ninstrument.\n230 Vesting of trust property in existing trustees\n(1) This section applies if—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 151\nAuthorised by the Parliamentary Counsel\n[s 231]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(a) before the commencement, 1 or more trustees were\nappointed under the repealed Act, section 12; and\n(b) immediately before the commencement, any assurance\nor thing required for vesting the trust property or any\npart of the trust property jointly in the persons who were\nthe trustees had not been executed or done under the\nrepealed Act, section 12(2)(d).\n(2) The repealed Act, section 12(2)(d) continues to apply in\nrelation to the vesting of the trust property as if this Act had\nnot been enacted.\n231 Powers etc. of existing trustees appointed under\nrepealed Act, s 12\nThe reference in section 26(1) to a person appointed under\npart 3, division 2 as a trustee of trust property is taken to\ninclude a reference to a person—\n(a) who was appointed as a trustee of trust property under\nthe repealed Act, section 12; and\n(b) whose appointment was still in effect immediately\nbefore the commencement.\n232 Removal and discharge of trustees in particular\ncircumstances happening or starting before\ncommencement\n(1) Section 29 applies in relation to a relevant trustee mentioned\nin section 20(1)(c), (d), (e), (f), (g) or (h) whether a\ncircumstance mentioned in those paragraphs happened, or\nstarted to apply, in relation to the relevant trustee before or\nafter the commencement.\n(2) Also, section 29 applies as if a reference in the section to a\nrelevant trustee mentioned in section 20(1)(c), (d), (e), (f), (g)\nor (h) included a reference to a trustee who—\n(a) was appointed as trustee before the commencement; and\n(b) is a child.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 152\nAuthorised by the Parliamentary Counsel\n[s 233]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n233 Application of requirement to notify former delegate of\ntrustee’s replacement, removal or discharge\nSection 31 applies in relation to the replacement, removal or\ndischarge of a trustee only if the replacement, removal or\ndischarge happens after the commencement.\n234 Vesting and divesting of particular trust property if\ntrustees appointed or discharged before commencement\n(1) This section applies if—\n(a) before the commencement, it was required under the\nrepealed Act, section 15(3) that the vesting of trust\nproperty in a new trustee, or the divesting of trust\nproperty from a discharged trustee, should be notified to\nor registered or recorded by the registrar or another\nperson mentioned in that section; and\n(b) immediately before the commencement, the trustees had\nnot complied with the repealed Act, section 15(3) in\nrelation to the vesting or divesting of the trust property.\n(2) The repealed Act, section 15 continues to apply in relation to\nthe vesting or divesting of the trust property as if this Act had\nnot been enacted.\n235 Exercise of trust powers etc. by surviving trustees\nSection 36 applies to a surviving trustee whether the trustee\nwho is survived died before or after the commencement.\n236 Vesting of trust property and devolution of trusts—death\nof last continuing trustee before commencement\n(1) If, immediately before the commencement, trust property\nremained vested in the public trustee under the repealed Act,\nsection 16(2), the repealed Act, section 16 continues to apply\nin relation to the following matters as if this Act had not been\nenacted—\n(a) the devolution and vesting of the trust property;\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 153\nAuthorised by the Parliamentary Counsel\n[s 237]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(b) the public trustee’s powers, authorities and discretions\nin relation to the trust property.\n(2) Despite its repeal, the repealed Act, section 16(6) continues to\napply to a person—\n(a) in whom trust property vested before the\ncommencement under the repealed Act, section\n16(2)(b); or\n(b) in whom trust property vests after the commencement\nunder the repealed Act, section 16(2)(b) as applied by\nsubsection (1).\n(3) Subsection (4) applies if—\n(a) before the commencement, trust property was divested\nfrom the public trustee under the repealed Act, section\n16(2)(a) or (b); or\n(b) after the commencement, trust property is divested from\nthe public trustee under the repealed Act, section\n16(2)(a) or (b) as applied by subsection (1).\n(4) Despite its repeal, the repealed Act, section 16(7) continues to\napply in relation to—\n(a) the liability of the public trustee in respect of any action\ntaken by the public trustee with regard to the trust\nproperty; and\n(b) any person who, but for paragraph (a), would have had a\nremedy against the public trustee.\n237 Vesting of trust property and devolution of trusts—death\nof last continuing trustee after commencement\nPart 3, division 7 applies only if the last continuing trustee of a\ntrust dies after the commencement.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 154\nAuthorised by the Parliamentary Counsel\n[s 238]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n238 Mortgage estates vested in public trustee before\ncommencement\n(1) This section applies if, immediately before the\ncommencement, an estate or interest in property by way of\nmortgage was vested in the public trustee under the repealed\nAct, section 17(1).\n(2) The repealed Act, section 17 continues to apply in relation to\nthe estate or interest in the property as if this Act had not been\nenacted.\n239 When grantee under letters of administration taken to be\ntrustee of will\nSection 45 applies—\n(a) whether a circumstance mentioned in section 45(1)(a) or\n(b) happened before or after the commencement; and\n(b) whether the letters of administration mentioned in\nsection 45(1)(c) were granted before or after the\ncommencement.\nDivision 4 Provisions for custodian trustees\n240 Application of pt 4 to existing trusts\nPart 4 applies in relation to a trust created before the\ncommencement as if the reference in sections 48(5), 49(4),\n50(3), 51(3), 52(3) and 54(3) to an express contrary intention\nin the trust instrument were a reference to the provisions of\nthe trust instrument.\n241 Application of Act to existing custodian trustees\n(1) Without limiting section 240, this Act applies in relation to an\nexisting custodian trustee as if—\n(a) the existing custodian trustee had been appointed as a\ncustodian trustee under section 47; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29","sortOrder":14},{"sectionNumber":"retrieval-0016","sectionType":"document_chunk","heading":"Document excerpt 16","content":"Page 155\nAuthorised by the Parliamentary Counsel\n[s 242]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(b) the trust property had vested in the existing custodian\ntrustee under section 48; and\n(c) the reference in sections 50(1) and (2) and 54(1) to an\ninstrument included a reference to an instrument made\nbefore the commencement and still in effect\nimmediately before the commencement.\n(2) In this section—\nexisting custodian trustee means a corporation—\n(a) that was appointed under the repealed Act, section 19(1)\nto be custodian trustee of a trust; and\n(b) whose appointment as custodian trustee was still in\neffect immediately before the commencement.\nDivision 5 Provisions for investments\n242 Investment advice obtained before commencement\n(1) This section applies in relation to advice obtained by a trustee\nunder the repealed Act, section 24(2) if, immediately before\nthe commencement, the trustee had not—\n(a) considered the advice; or\n(b) paid the reasonable costs of obtaining the advice out of\ntrust funds.\n(2) Section 72(2) applies in relation to the advice as if the advice\nhad been obtained under section 72(1).\n243 First review of existing trust investments\n(1) This section applies in relation to trust investments held by a\ntrustee immediately before the commencement.\n(2) Despite section 73, the first review of the performance of the\ntrust investments must be conducted—\n(a) if the most recent review of the trust investments under\nthe repealed Act, section 22(3) was completed more\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 156\nAuthorised by the Parliamentary Counsel\n[s 244]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\nthan 12 months before the commencement, or a review\nof the trust investments under that section was never\nconducted—within 12 months after the commencement;\nor\n(b) otherwise—within 12 months after the completion of\nthe most recent review of the trust investments under the\nrepealed Act, section 22(3).\n244 Dwelling house purchased etc. as residence before\ncommencement\n(1) This section applies if—\n(a) before the commencement, a trustee purchased, retained\nor otherwise secured a dwelling house for a beneficiary\nto use as a residence under the repealed Act, section 28;\nand\n(b) immediately before the commencement—\n(i) the trustee had not yet made the dwelling house\navailable to the beneficiary to use as a residence; or\n(ii) the beneficiary was using the dwelling house as a\nresidence; or\n(iii) if the beneficiary’s use of the dwelling house had\nended—the trustee had retained the dwelling house\nor an interest or rights in the dwelling house under\nthe repealed Act, section 28(4).\n(2) Section 75 applies in relation to the dwelling house as if—\n(a) the dwelling house were a residence bought, retained or\notherwise secured by the trustee under section 75(1);\nand\n(b) any conditions on which the dwelling house was being\nmade available to the beneficiary immediately before\nthe commencement had been imposed under section\n75(2) and (3).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 157\nAuthorised by the Parliamentary Counsel\n[s 245]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n245 Liability for particular loans made by trustee before\ncommencement\nSections 78 and 79 apply in relation to a loan of trust funds on\nthe security of property whether the loan was made before or\nafter the commencement.\n246 Proceedings against trustees for breach of trust in\nrelation to exercise of investment power\n(1) Section 80 applies in relation to a proceeding for a breach of\ntrust in relation to the exercise of an investment power—\n(a) whether the investment power was exercised before or\nafter the commencement; but\n(b) only if the proceeding is started after the\ncommencement.\n(2) For a proceeding started after the commencement in relation\nto an investment power exercised before the commencement,\nsection 80 applies as if—\n(a) the section did not include section 80(2)(b); and\n(b) the reference in section 80(2)(c) to section 71 included a\nreference to the repealed Act, section 24.\n(3) Also, for subsections (1) and (2) and section 80 as applied by\nsubsections (1) and (2), a reference to an investment power is\ntaken to include a reference to a power conferred on a trustee\nunder the repealed Act, part 3.\n(4) The repealed Act, section 30B continues to apply in relation\nto a proceeding mentioned in that section and started before\nthe commencement as if this Act had not been enacted.\n247 Set off of gains and losses in proceedings for breach of\ntrust\n(1) Section 81 applies in relation to a proceeding for a breach of\ntrust in relation to an investment—\n(a) whether the investment was made before or after the\ncommencement; but\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 158\nAuthorised by the Parliamentary Counsel\n[s 248]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(b) only if the proceeding is started after the\ncommencement.\n(2) The repealed Act, section 30C continues to apply in relation\nto a proceeding mentioned in the repealed Act, section 30C(1)\nand started before the commencement as if this Act had not\nbeen enacted.\n248 Particular references in documents to authorised\ninvestments etc.\n(1) Subsection (2) applies if a provision in a document, whether\nor not the document creates a trust, authorises or requires a\nperson to invest an amount in the investments authorised by\nthe repealed Act as in force immediately before—\n(a) the commencement of the Trusts (Investments)\nAmendment Act 1999; or\n(b) the repeal of the repealed Act.\n(2) The provision is to be read as if it authorised or required the\nperson to invest the amount according to the provisions of part\n6 in relation to the investment of trust funds.\n(3) Subsection (4) applies to a reference in a document to—\n(a) an authorised investment under the repealed Trustees\nand Executors Act 1897, section 4; or\n(b) an authorised investment under the repealed Act as in\nforce immediately before—\n(i) the commencement of the Trusts (Investments)\nAmendment Act 1999; or\n(ii) the repeal of the repealed Act.\n(4) The reference may, if the context permits, be taken to be a\nreference to an investment that—\n(a) could be made by a trustee exercising an investment\npower under part 6; or\n(b) is authorised by an order made under section 179; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 159\nAuthorised by the Parliamentary Counsel\n[s 249]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(c) is authorised by another Act for the investment of trust\nfunds or the general law.\nDivision 6 Provisions for general powers of\ntrustees\n249 Application of general powers in relation to existing trust\nproperty\n(1) To remove any doubt, it is declared that the powers conferred\non a trustee in relation to trust property under section 82 apply\nin relation to trust property held by a trustee immediately\nbefore the commencement.\n(2) Without limiting subsection (1), the powers mentioned in\nsection 82(2)(b) and (c) to renew, extend or vary a lease or\nmortgage of trust property apply in relation to a lease or\nmortgage in existence immediately before the\ncommencement.\n250 Power to apportion particular expenditure and payments\nmade before commencement\n(1) This section applies if—\n(a) before the commencement, a trustee expended money or\nmade a payment under the repealed Act, section\n33(1)(a) to (f); and\n(b) immediately before the commencement, the trustee had\nnot apportioned the expenditure or payment under the\nrepealed Act, section 33(1)(g).\n(2) Section 86 applies to the trustee as if the reference in section\n86(1) to expenditure made under section 85 included a\nreference to the expenditure or payment made under the\nrepealed Act, section 33(1)(a) to (f).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 160\nAuthorised by the Parliamentary Counsel\n[s 251]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n251 Existing notices of appropriation\n(1) This section applies if—\n(a) before the commencement, notice of an appropriation of\ntrust property was given to 1 or more persons under the\nrepealed Act, section 33(1)(l)(ii); and\n(b) immediately before the commencement—\n(i) the appropriation had not been made; or\n(ii) if an application to vary the appropriation had been\nmade—the application had not been decided.\n(2) The repealed Act, section 33(1)(l) and (2) to (4) continues to\napply in relation to the appropriation as if this Act had not\nbeen enacted.\n252 Appropriation before commencement to pay annuity or\nperiodic payment\n(1) This section applies if, under the repealed Act, section\n33(1)(m), a trustee set aside and appropriated out of the trust\nproperty and invested a sum to pay an annuity or other\nperiodic payment.\n(2) The repealed Act, section 33(1)(m)(i) continues to apply to\nthe annuitant as if this Act had not been enacted.\n(3) Also, if immediately before the commencement, the trustee\nhad not distributed the residue of the trust property and the\nincome from the residue—\n(a) the repealed Act, section 33(1)(m)(ii) continues to apply\nto the trustee as if this Act had not been enacted; and\n(b) if the residue of the trust property is or includes land\nsubject to the provisions of the Land Title Act 1994 or\nany other Act—the repealed Act, section 33(5)\ncontinues to apply as if this Act had not been enacted.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 161\nAuthorised by the Parliamentary Counsel\n[s 253]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n253 Distribution of land after notice given to registrar or other\nperson before commencement\n(1) This section applies if—\n(a) before the commencement, a trustee gave the relevant\nofficial notice under the repealed Act, section 33(5) that\nland subject to the provisions of the Land Title Act 1994\nor another Act was distributable because of an\nappropriation mentioned in that subsection; and\n(b) immediately before the commencement, the relevant\nofficial had not registered or recorded the dealing\neffecting the distribution of the land.\n(2) The repealed Act, section 33(5) continues to apply in relation\nto the relevant official as if this Act had not been enacted.\n(3) In this section—\nrelevant official, in relation to land subject to the provisions\nof the Land Title Act 1994 or another Act, means the registrar\nor other person, if any, having the duty or function of\nregistering or recording dealings under that Act.\n254 Conveyance of property sold before commencement on\nterms of deferred payment\n(1) This section applies if—\n(a) before the commencement, a trustee sold property on\nterms of deferred payment under the repealed Act,\nsection 37; and\n(b) immediately before the commencement, the balance of\nthe purchase money and any interest payable on the\nbalance of the purchase money under that section had\nnot been paid.\n(2) The repealed Act, section 37 continues to apply in relation to\nthe sale as if this Act had not been enacted.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 162\nAuthorised by the Parliamentary Counsel\n[s 255]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n255 Delegation of matter by power of attorney in operation\nbefore commencement\n(1) This section applies if, immediately before the\ncommencement, a power of attorney delegating a matter\nunder the repealed Act, section 56(1) was in operation under\nsection 56(5) of that Act.\n(2) Subject to subsection (3), the repealed Act, section 56\ncontinues to apply in relation to the power of attorney as if\nthis Act had not been enacted.\n(3) The repealed Act, section 56(2) continues to apply only until\nthe earliest of the following to happen—\n(a) the power of attorney is revoked under the repealed Act,\nsection 56(5);\n(b) the power of attorney, to the extent it provides for the\ndelegation, otherwise ends;\n(c) the beginning of the day that is 1 year after the day this\nsection commences.\n256 Existing appointments of agents\n(1) This section applies if, immediately before the\ncommencement, the appointment of an agent under the\nrepealed Act, section 54 was still in effect.\n(2) The appointment of the agent is taken to have been made\nunder section 107 on the same terms and conditions that\napplied to the agent before the commencement.\n(3) Despite section 107(5), subsection (2) applies whether or not\nthe agent is a beneficiary of the trust to which the appointment\nrelates.\n257 Application of income by trustee-mortgagee in\npossession\n(1) Part 7, division 6 applies only in relation to a trustee who\nbecomes mortgagee in possession of land in the circumstances\nmentioned in section 110(1) after the commencement.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 163\nAuthorised by the Parliamentary Counsel\n[s 258]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(2) If a trustee became mortgagee in possession of mortgaged\nland before the commencement in the circumstances\nmentioned in the repealed Act, section 42(1), the repealed\nAct, section 42 continues to apply as if this Act had not been\nenacted.\n258 Application of insurance money\n(1) Section 115 applies in relation to an amount received by a\ntrustee under an insurance policy—\n(a) whether the policy was taken out before or after the\ncommencement; but\n(b) only if the amount is received after the commencement.\n(2) The repealed Act, section 48 continues to apply in relation to\nan amount received by a trustee under an insurance policy\nbefore the commencement as if this Act had not been enacted.\n259 Payment for deposit of documents for safe custody\nbefore commencement\n(1) This section applies if, immediately before the\ncommencement, any sum payable in respect of the deposit by\na trustee of a document under the repealed Act, section 49 had\nnot been paid.\n(2) The repealed Act, section 49 continues to apply in relation to\nthe payment of the sum as if this Act had not been enacted.\n260 Valuations if required consultation undertaken before\ncommencement\n(1) This section applies if—\n(a) before the commencement, a trustee, for the purpose of\nascertaining and fixing the value of any property under\nthe repealed Act, section 51, consulted a duly qualified\nperson as to the value of the property; and\n(b) immediately before the commencement, the trustee had\nnot fixed the value of the property.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 164\nAuthorised by the Parliamentary Counsel\n[s 261]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(2) Section 117 applies to the trustee as if the consultation\nmentioned in subsection (1)(a) were consultation undertaken\nunder section 117(3)(a) about the value of the property.\n261 Audit conducted before commencement\n(1) This section applies if—\n(a) before the commencement, the accounts of trust\nproperty were examined or audited under the repealed\nAct, section 52(1); and\n(b) immediately before the commencement, the costs of the\nexamination or audit had not been charged against the\ncapital or income of the trust property.\n(2) The repealed Act, section 52(2) and (3) continues to apply in\nrelation to the costs of the examination or audit as if this Act\nhad not been enacted.\n262 Costs etc. of inquiries about beneficiaries\n(1) Section 120 applies in relation to the costs, expenses and\ncharges incurred by a trustee in making inquiries to ascertain\nthe existence or whereabouts of a beneficiary of the trust,\nwhether the costs, expenses and charges were incurred before\nor after the commencement.\n(2) However, for a trust created before the commencement,\nsection 120 applies as if the reference in section 120(3) to an\nexpress contrary intention in the trust instrument were a\nreference to a contrary intention in the trust instrument.\n263 Effect of conversion of land or personal property before\ncommencement under statutory power\nA reference in section 122 to an exercise of power under this\nAct is taken to include a reference to an exercise of power\nunder the repealed Act.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29","sortOrder":15},{"sectionNumber":"retrieval-0017","sectionType":"document_chunk","heading":"Document excerpt 17","content":"Page 165\nAuthorised by the Parliamentary Counsel\n[s 264]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n264 Businesses carried on before commencement\n(1) This section applies if, immediately before the\ncommencement, a trustee was carrying on a business under\nthe repealed Act, section 57.\n(2) The repealed Act, section 57 continues to apply to the trustee\nin relation to the business as if this Act had not been enacted.\nDivision 7 Provisions for maintenance,\neducation and advancement\n265 Accumulations of surplus trust income held before\ncommencement\n(1) This section applies if, immediately before the\ncommencement, a trustee held accumulations of the income\nof trust property under the repealed Act section 61(2),\nincluding that section as applied by the repealed Act, section\n61(5).\n(2) Section 125, including that section as applied by section 127,\napplies in relation to the accumulations as if they were\namounts invested and held by the trustee under section 125(2).\n266 Application of trust capital, and bringing particular\namounts into account, if capital paid or applied before\ncommencement\n(1) This section applies if, before the commencement, a trustee\nexercised power under the repealed Act, section 62 to pay or\napply an amount out of the trust capital in relation to a\nbeneficiary of the trust.\n(2) For exercising power under section 128 in relation to the\nbeneficiary, the reference in section 128(4) to the amounts of\nthe relevant capital paid or applied is taken to include a\nreference to the amount paid or applied out of the trust capital\nin relation to the beneficiary under the repealed Act, section\n62.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 166\nAuthorised by the Parliamentary Counsel\n[s 267]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(3) Also, section 131 applies in relation to the beneficiary as if the\nreference in that section to an amount paid or applied out of\nrelevant capital under part 8, division 3 included a reference to\nan amount paid or applied out of the trust capital in relation to\nthe beneficiary under the repealed Act, section 62.\n267 Requirement for chief executive to publish prescribed\namount for financial year\nThe first financial year in relation to which section 130(2)\napplies is the financial year mentioned in section 130(1)(b).\n268 Conditions imposed before commencement on advances\nfor maintenance etc.\n(1) This section applies if, immediately before the\ncommencement, a condition imposed under the repealed Act,\nsection 63 was still in effect.\n(2) Part 8, division 4 applies in relation to the condition as if it\nwere a condition imposed under section 132(2) in exercising a\npower mentioned in section 132(1).\n269 Existing protective trusts\n(1) This section applies if, immediately before the\ncommencement, income (including an annuity or other\nperiodical income payment) was directed to be held on\nprotective trusts for the benefit of any person for the period of\nthe person’s life or for any less period.\n(2) Until the end of the period mentioned in subsection (1), the\nincome continues to be held on the trusts provided for under\nthe repealed Act, section 64 as if this Act had not been\nenacted.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n\nPage 167\nAuthorised by the Parliamentary Counsel\n[s 270]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\nDivision 8 Provisions for indemnities and\nprotection of trustees and other\npersons\n270 Protection against liability for rents and covenants if\naccrued liabilities satisfied before commencement\n(1) This section applies if—\n(a) before the commencement, a personal representative or\ntrustee who was liable under a lease, grant or indemnity\nfor a matter mentioned in the repealed Act, section\n66(1)(a), (b) or (c) satisfied all liabilities that had\naccrued and, if necessary, set apart a fund as mentioned\nin the repealed Act, section 66(1); but\n(b) immediately before the commencement, the personal\nrepresentative or trustee had not distributed the\nresiduary real and personal estate of the deceased\ntestator or intestate, or the trust estate, under the\nrepealed Act, section 66(1)(d).\n(2) The repealed Act, section 66 continues to apply in relation to\nthe distribution of the residuary real and personal estate, or the\ntrust estate, as if this Act had not been enacted.\n271 Existing notices of intended distribution of trust property\nor estate\n(1) This section applies if—\n(a) before the commencement, a trustee or personal\nrepresentative gave notice under the repealed Act,\nsection 67(1) in relation to the distribution of any trust\nproperty or estate; and\n(b) either—\n(i) the date fixed in the notice for the sending of\nparticulars of claims was a date on or after the\ncommencement; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 168\nAuthorised by the Parliamentary Counsel\n[s 272]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(ii) if subparagraph (i) does not apply—immediately\nbefore the commencement, the trust property or\nestate had not been distributed.\n(2) The repealed Act, section 67 continues to apply in relation to\nthe distribution of the trust property or estate as if this Act had\nnot been enacted.\n272 Existing notices calling on claimants and potential\nclaimants to take legal proceedings etc.\n(1) This section applies in relation to a claim mentioned in the\nrepealed Act, section 68(1) if—\n(a) before the commencement, a trustee served a notice\nunder the repealed Act, section 68(1) calling on the\nclaimant or a person who may become a claimant,\nwithin a period of 6 months from the date of service of\nthe notice, to take legal proceedings to enforce the claim\nand also to prosecute the proceedings with all due\ndiligence; and\n(b) immediately before the commencement—\n(i) the period of 6 months had not ended; or\n(ii) the claimant or other person had not complied with\nthe notice.\n(2) The repealed Act, section 68 continues to apply in relation to\nthe claim, and a proceeding started under the repealed Act,\nsection 68(2) must be heard and decided as if this Act had not\nbeen enacted.\n(3) However, for deciding the proceeding, the reference in the\nrepealed Act, section 68(3)(a) to barring the claim is taken to\nbe a reference to barring the claim (including for all\npurposes).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 169\nAuthorised by the Parliamentary Counsel\n[s 273]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n273 Existing proceedings for orders in relation to\nproceedings not taken or prosecuted in compliance with\nnotice served before commencement\n(1) This section applies if a proceeding under the repealed Act,\nsection 68(2) was started, but not finally decided, before the\ncommencement.\n(2) The repealed Act, section 68 continues to apply in relation to\nthe proceeding, and the proceeding must be heard and\ndecided, as if this Act had not been enacted.\n(3) However, for deciding the proceeding, the reference in the\nrepealed Act, section 68(3)(a) to barring the claim is taken to\nbe a reference to barring the claim (including for all\npurposes).\n274 Remedies for wrongful distribution of trust property\n(1) Part 9, division 3 applies in relation to the enforcement of a\nremedy for the wrongful distribution of trust property—\n(a) whether the wrongful distribution was made before or\nafter the commencement; but\n(b) only if a proceeding to enforce the remedy was not\nstarted before the commencement.\n(2) The repealed Act, section 113 continues to apply in relation to\na proceeding started before the commencement to enforce a\nremedy for the wrongful distribution of trust property as if this\nAct had not been enacted.\n275 Effect of order made before commencement refusing\nleave to enforce remedy for wrongful distribution of trust\nproperty in particular way\n(1) This section applies if—\n(a) before the commencement—\n(i) a person suffered loss because of a trustee’s\nwrongful distribution of trust property; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 170\nAuthorised by the Parliamentary Counsel\n[s 276]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(ii) the person applied for the leave of the court, as\nmentioned in the repealed Act, section 113(2), to\nenforce a remedy against another person in respect\nof the wrongful distribution without first\nexhausting all remedies that may have been\navailable to the person against the trustee; and\n(iii) the court made an order refusing the person’s\napplication for leave; and\n(b) immediately before the commencement, the person had\nnot started a proceeding against the trustee to enforce a\nremedy in respect of the wrongful distribution.\n(2) On the commencement, the order ceases to have effect.\n(3) Without limiting section 274(1), to remove any doubt, it is\ndeclared that section 143(3) applies to the person for the\npurpose of enforcing a remedy in respect of the wrongful\ndistribution of the trust property.\n276 Expenses reasonably incurred before commencement in\nadministering trust\nSection 149 applies in relation to expenses reasonably\nincurred in administering a trust whether the expenses were\nincurred before or after the commencement.\n277 Statement in existing instrument about vacancy in trust\nor removal of trustee\nSection 151 applies in relation to an instrument under which a\nnew trustee is appointed or a trustee is removed, whether the\ninstrument was made before or after the commencement.\n278 Power of court to relieve trustee from personal liability for\nbreach of trust committed before commencement\nSection 155 applies in relation to a breach of trust whether the\nbreach was committed before or after the commencement.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 171\nAuthorised by the Parliamentary Counsel\n[s 279]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n279 Power of court to make beneficiary indemnify for breach\nof trust committed before commencement\nSection 156 applies in relation to a breach of trust whether the\nbreach was committed before or after the commencement.\n280 Indemnity for acts done under particular court orders\nTo remove any doubt, it is declared that a reference in section\n157 to an order purporting to be made under this Act includes\na reference to an order purporting to be made under a\nprovision of the repealed Act that, under a provision of this\nAct, continues to apply after the commencement.\nDivision 9 Provisions for remuneration of\ntrustees\n281 Existing proceedings for remuneration of trustees\n(1) This section applies if a proceeding under the repealed Act,\nsection 101(1) was started, but not finally decided, before the\ncommencement.\n(2) The repealed Act continues to apply in relation to the\nproceeding, and the proceeding must be heard and decided, as\nif this Act had not been enacted.\n282 Proceedings for remuneration of trustees for whom\ncharges have been paid out under repealed Act\n(1) This section applies if—\n(a) before the commencement, charges were paid out of\ntrust property to a trustee under the repealed Act, section\n101(2); and\n(b) after the commencement, the trustee starts a proceeding\nunder section 160.\n(2) Section 160 applies in relation to the proceeding as if the\nreference in section 160(2) to professional charges paid out of\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 172\nAuthorised by the Parliamentary Counsel\n[s 283]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\nthe trust property to the trustee under section 159 included a\nreference to charges paid out of the trust property to the\ntrustee under the repealed Act, section 101(2).\n283 Application of s 161 to amounts charged, or proposed to\nbe charged, for commission or professional charges\nSection 161 applies only in relation to an amount for\ncommission or professional charges that is charged, or\nproposed to be charged, after the commencement.\nDivision 10 Provisions for court powers\n284 Existing proceedings under particular provisions of\nrepealed Act\n(1) This section applies if, immediately before the\ncommencement, a proceeding started under any of the\nfollowing provisions of the repealed Act had not been finally\ndecided—\n(a) section 8;\n(b) part 7, division 2 or 3;\n(c) part 7, division 4, other than section 101.\n(2) The repealed Act continues to apply in relation to the\nproceeding, and the proceeding must be heard and decided\nunder the repealed Act, as if this Act had not been enacted.\n285 Powers etc. of trustees appointed by court under\nrepealed Act, s 80\nThe reference in section 167(1) to a person appointed by an\norder made under section 166(2) as the trustee of trust\nproperty is taken to include—\n(a) a reference to a person appointed as a trustee under the\nrepealed Act, section 80 whose appointment was still in\neffect immediately before the commencement; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 173\nAuthorised by the Parliamentary Counsel\n[s 286]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(b) a reference to a person appointed as a trustee after the\ncommencement under the repealed Act, section 80 as\napplied by section 284.\n286 Power to disqualify particular persons from appointment\nas trustees and remove them as trustees of other trusts\nThe reference in section 168(1)(a) to a person removed as\ntrustee of a trust under section 166(2)(c) is taken to include a\nreference to a person who is replaced as a trustee, after the\ncommencement, on the making of an order appointing a new\ntrustee in substitution for the person under the repealed Act,\nsection 80 as applied by section 284.\n287 Circumstances relating to validity of vesting and other\norders made under repealed Act\n(1) This section applies in relation to a vesting order or any other\norder, declaration or direction, other than a relevant property\norder, made or given—\n(a) before the commencement under the repealed Act, part\n7, division 3; or\n(b) after the commencement under the repealed Act, part 7,\ndivision 3 as applied by section 284.\n(2) Section 176 applies in relation to the vesting order or the other\norder, declaration or direction as if it had been made, or given,\nunder section 171.\n(3) In this section—\nrelevant property order means an order under the repealed\nAct, section 86 or 87.\n288 Agreements entered into for infants by court-appointed\npersons\n(1) This section applies if—\n(a) immediately before the commencement, a person\nappointed by an order made under the repealed Act,\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 174\nAuthorised by the Parliamentary Counsel\n[s 289]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\nsection 86(1) to enter into an agreement for or on behalf\nof an infant had not entered into the agreement; or\n(b) after the commencement, the court makes an order\nunder the repealed Act, section 86(1) as applied by\nsection 284.\n(2) The repealed Act, section 86(2) continues to apply to an\nagreement entered into under the order after the\ncommencement in accordance with the repealed Act, section\n86.\n289 Orders authorising dealings etc. in relation to particular\nproperty to which infants are beneficially entitled\n(1) This section applies if—\n(a) immediately before the commencement, an order made\nunder the repealed Act, section 87(1)(a) or (b) was still\nin effect; or\n(b) after the commencement, an order is made under the\nrepealed Act, section 87(1)(a) or (b) as applied by\nsection 284.\n(2) The repealed Act, section 87(2) continues to apply to an act\ndone under the order after the commencement in accordance\nwith the repealed Act, section 87.\n290 Vesting orders made under repealed Act\n(1) This section applies if—\n(a) immediately before the commencement, the trustees of a\ntrust had not complied with the repealed Act, section\n90(3) in relation to the notification, registration or\nrecording of a vesting order made under the repealed\nAct, part 7, division 3; or\n(b) after the commencement, a vesting order is made under\nthe repealed Act, part 7, division 3 as applied by section\n284.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31","sortOrder":16},{"sectionNumber":"retrieval-0018","sectionType":"document_chunk","heading":"Document excerpt 18","content":"Page 175\nAuthorised by the Parliamentary Counsel\n[s 291]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(2) The repealed Act, section 90(1) to (5) continues to apply in\nrelation to the vesting order, and the notification, registration\nor recording of the vesting order, as if this Act had not been\nenacted.\n291 Powers of persons in whose favour vesting order as\ntrustee made under repealed Act\n(1) This section applies in relation to a person if—\n(a) before the commencement, a vesting order as trustee\nwas made in favour of the person under the repealed\nAct, part 7, division 3; or\n(b) after the commencement, a vesting order as trustee is\nmade in favour of the person under the repealed Act,\npart 7, division 3 as applied by section 284.\n(2) The repealed Act, section 90(6) continues to apply to the\nperson as if this Act had not been enacted.\n292 Conveyance or release by person appointed by court\nunder repealed Act, s 92\n(1) This section applies if—\n(a) immediately before the commencement, land had not\nbeen conveyed, or a contingent right had not been\nreleased, by a person appointed for that purpose by an\norder made under the repealed Act, section 92; or\n(b) after the commencement, the court makes an order\nunder the repealed Act, section 92 as applied by section\n284 appointing a person to convey land or release a\ncontingent right.\n(2) The repealed Act, section 92 continues to apply to the\nconveyance of the land, or the release of the contingent right,\nby the person in conformity with the order after the\ncommencement as if this Act had not been enacted.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 176\nAuthorised by the Parliamentary Counsel\n[s 293]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n293 Revocation or variation of orders made under repealed\nAct, s 94\nA reference in section 180 to an order made under section 179\nis taken to include—\n(a) a reference to an order made under the repealed Act,\nsection 94(1) that, immediately before the\ncommencement, was still in effect; and\n(b) a reference to an order made after the commencement\nunder the repealed Act, section 94(1) as applied by\nsection 284.\n294 Directions made under repealed Act, s 96\n(1) This section applies if, after the commencement, a trustee acts\nin accordance with—\n(a) a direction given in a proceeding under the repealed Act,\nsection 96 that was still in effect immediately before the\ncommencement; or\n(b) a direction given after the commencement in a\nproceeding under the repealed Act, section 96 as applied\nby section 284.\n(2) Section 185 applies to the trustee as if the direction had been\ngiven in a proceeding under section 184.\n295 Application of provisions about proceedings in absence\nof particular persons\n(1) Sections 190 and 191 apply only in relation to a proceeding\nstarted after the commencement.\n(2) The repealed Act, section 99 continues to apply in relation to\na proceeding started before the commencement as if this Act\nhad not been enacted.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 177\nAuthorised by the Parliamentary Counsel\n[s 296]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n296 Application of provisions for orders about costs\nThe repealed Act, section 100 continues to apply in relation to\na proceeding started before the commencement as if this Act\nhad not been enacted.\n297 Payment into court—orders made before commencement\n(1) This section applies if, immediately before the\ncommencement—\n(a) money or securities ordered to be paid into court under\nthe repealed Act, section 102(3) had not been paid into\ncourt; or\n(b) money or securities ordered to be paid or delivered to\nthe majority of trustees under the repealed Act, section\n102(4) had not been paid or delivered to the trustees.\n(2) The repealed Act, section 102(5) continues to apply to any\npayment or delivery of the money or securities made in\naccordance with the order after the commencement as if this\nAct had not been enacted.\n298 Payment into court—money or securities paid before\ncommencement\n(1) This section applies if, immediately before the\ncommencement, money or securities paid into court under the\nrepealed Act, section 102 had not been paid out of court.\n(2) Section 193(4) applies to the money or securities as if they\nhad been paid into court under section 193(2).\nDivision 11 Provision for charitable trusts\n299 Existing proceedings in relation to charitable trusts\n(1) This section applies in relation to a proceeding under the\nrepealed Act, section 106 that was started, but not finally\ndecided, before the commencement.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 178\nAuthorised by the Parliamentary Counsel\n[s 300]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(2) The repealed Act continues to apply in relation to the\nproceeding, and the proceeding must be heard and decided, as\nif this Act had not been enacted.\nDivision 12 Provision for gifts by particular\ntrustees to charity-like government\nentities or other entities\n300 Application of pt 13 to funds and trusts established\nbefore commencement\n(1) For section 212, definition prescribed trust, it does not matter\nwhether—\n(a) the ancillary fund mentioned in paragraph (a) of the\ndefinition was established before or after the\ncommencement; or\n(b) the trust mentioned in paragraph (b) of the definition\nwas established before or after the commencement.\n(2) This section does not limit section 3(1).\nDivision 13 Provisions for particular\nphilanthropic gifts\nSubdivision 1 Preliminary\n301 Definition for division\nIn this division—\nrelevant period means the period—\n(a) starting on the commencement of the Criminal Proceeds\nConfiscation and Other Acts Amendment Act 2009,\nsection 84; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nPage 179\nAuthorised by the Parliamentary Counsel\n[s 302]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(b) ending immediately before the commencement of this\nsection.\nSubdivision 2 Validation of exercise, or purported\nexercise, of particular powers\n302 Validation provision for exercise, or purported exercise,\nof particular powers during relevant period\n(1) This section applies if, during the relevant period, the trustees\nof a prescribed trust exercised, or purported to exercise, a\npower mentioned in the repealed Act, section 109(1) in\nrelation to the trust.\n(2) The exercise, or purported exercise, of the power is taken to\nbe, and always to have been, as valid as it would be or would\nhave been if—\n(a) a declaration mentioned in the repealed Act, section\n109(3) had been in force for the prescribed trust; and\n(b) the trustees had complied with—\n(i) any limitation that applied under the repealed Act,\nsection 109(4) and (5) in relation to the prescribed\ntrust; and\n(ii) the repealed Act, section 109(6).\n(3) In this section—\nprescribed trust means a prescribed trust within the meaning\nof the repealed Act, section 107.\nNotes—\n1 See section 306 in relation to the application of section 305 if the\nexercise, or purported exercise, of a power is validated under this\nsection.\n2 See also section 222 of this Act and the repealed Act, section 122\nin relation to the validation of other matters in relation to\nprescribed trusts.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 180\nAuthorised by the Parliamentary Counsel\n[s 303]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\nSubdivision 3 Application of Act to particular\nprescribed trusts\n303 Definitions for subdivision\nIn this subdivision—\nformer prescribed power, for a prescribed trust, see section\n304(1) and (2).\nprescribed trust see section 212.\nNote—\nSee also section 300.\n304 Meaning of former prescribed power\n(1) For this subdivision, if—\n(a) at any time during the relevant period, the trust\ninstrument for a prescribed trust included an express\npower mentioned in the repealed Act, section 108; and\n(b) the express power applied in relation to a non-charitable\neligible recipient, whether or not the express power also\napplied in relation to another eligible recipient;\nthe express power, to the extent it applied in relation to a\nnon-charitable eligible recipient, is a former prescribed power\nfor the prescribed trust.\n(2) Also, for this subdivision, if—\n(a) at any time during the relevant period, the powers of the\ntrustees of a prescribed trust included a power conferred\nunder the repealed Act, section 109; and\n(b) the power applied in relation to a non-charitable eligible\nrecipient, whether or not the power also applied in\nrelation to another eligible recipient;\nthe power, to the extent it applied in relation to a\nnon-charitable eligible recipient is a former prescribed power\nfor the prescribed trust.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 181\nAuthorised by the Parliamentary Counsel\n[s 305]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(3) In this section—\neligible recipient means an eligible recipient within the\nmeaning of the repealed Act, section 107.\nnon-charitable eligible recipient means an eligible recipient\nthat—\n(a) was not charity at law; or\n(b) without limiting paragraph (a), was not established for 1\nor more charitable purposes.\n305 Application of Act to particular prescribed trusts\n(1) This section applies in relation to a prescribed trust if, at any\ntime during the relevant period—\n(a) the trust instrument for the prescribed trust included a\nformer prescribed power mentioned in section 304(1);\nor\n(b) the powers of the trustees of the prescribed trust\nincluded a former prescribed power mentioned in\nsection 304(2).\n(2) This Act applies in relation to the prescribed trust as if the\nformer prescribed power for the trust were a power\nexercisable for a charitable purpose.\n(3) Without limiting subsection (2)—\n(a) neither the existence of the former prescribed power, nor\nthe exercise of the former prescribed power during the\nrelevant period, affects the validity or status of the\nprescribed trust as a charitable trust; and\n(b) the prescribed trust is to be construed and given effect to\nas if—\n(i) the former prescribed power were a power\nexercisable for a charitable purpose; and\n(ii) any payment or application of the trust property or\nthe trust income, or of any part of either of them, in\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 182\nAuthorised by the Parliamentary Counsel\n[s 306]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\nthe way allowed by the former prescribed power\nhad been to or for a charitable purpose; and\n(c) neither the existence of the former prescribed power, nor\nthe exercise of the former prescribed power during the\nrelevant period, affects the control of the prescribed trust\nby the Supreme Court in the exercise of the court’s\ngeneral jurisdiction in relation to charitable trusts; and\n(d) the jurisdiction mentioned in paragraph (c) extends to\nthe former prescribed power as if the power were\nexercisable for a charitable purpose.\n(4) A reference in subsection (3)(a) and (c) to the existence of the\nformer prescribed power is a reference to—\n(a) for a former prescribed power mentioned in section\n304(1)—the existence of the power in the trust\ninstrument at any time during the relevant period,\nwhether or not the power exists in the trust instrument\nafter the commencement; or\n(b) for a former prescribed power mentioned in section\n304(2)—the existence of the power at any time during\nthe relevant period.\n(5) Nothing in this section authorises the trustees of a prescribed\ntrust to exercise a former prescribed power after the\ncommencement.\n306 Application of s 305 in relation to particular powers\nexercised, or purportedly exercised, before\ncommencement\n(1) This section applies if—\n(a) during the relevant period, the trustees of a prescribed\ntrust exercised, or purported to exercise, a power\nmentioned in the repealed Act, section 109(1) in relation\nto the trust; and\n(b) the exercise, or purported exercise, of the power is valid\nonly because of section 302.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 183\nAuthorised by the Parliamentary Counsel\n[s 307]\nTrusts Bill 2025\nPart 17 Transitional and validation provisions\n(2) Section 305 applies in relation to the power as if the power\nwere a former prescribed power mentioned in section 304(2).\n(3) Also, section 305 applies in relation to the exercise, or\npurported exercise, of the power as if the exercise, or\npurported exercise, of the power were the exercise of a former\nprescribed power mentioned in section 304(2).\nDivision 14 Provision for particular statutory\ntrustees under repealed Act\n307 Continued application of repealed Act to statutory\ntrustees of settled land\n(1) This section applies if, immediately before the\ncommencement, a person was a statutory trustee within the\nmeaning of the repealed Act in respect of land mentioned in\nthe repealed Act, section 6(1)(a) (the settled land).\n(2) The repealed Act continues to apply to the statutory trustee in\nrespect of the settled land as if this Act had not been enacted.\nDivision 15 Other matters\n308 Requirements for particular transfers to local\ngovernments to end\n(1) This section applies if—\n(a) before the commencement, an instrument of transfer of\nland to which the repealed Act, section 117 applied was\nlodged for registration under the Land Title Act 1994,\nbut the instrument of transfer was not accompanied by a\nstatutory declaration mentioned in the repealed Act,\nsection 117; and\n(b) immediately before the commencement, the instrument\nof transfer had not been registered.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n\nPage 184\nAuthorised by the Parliamentary Counsel\n[s 309]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n(2) To remove any doubt, it is declared that, on the\ncommencement, the repealed Act, section 117 ceases to apply\nin relation to the instrument of transfer.\n309 References to repealed Act\nA reference in an instrument to the repealed Act may, if the\ncontext permits, be taken to be a reference to this Act.\n310 Transitional regulation-making power\n(1) A regulation (a transitional regulation) may make provision\nabout a matter for which—\n(a) it is necessary to make provision to allow or facilitate\nthe doing of anything to achieve the transition from the\noperation of the repealed Act to the operation of this\nAct; and\n(b) this Act does not provide or sufficiently provide.\n(2) A transitional regulation may have retrospective operation to a\nday not earlier than the day this section commences.\n(3) A transitional regulation must declare it is a transitional\nregulation.\n(4) This section and any transitional regulation expire on the day\nthat is 2 years after the day this section commences.\nPart 18 Amendment of Acts\nDivision 1 Amendment of this Act\n311 Act amended\nThis division amends this Act.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n\nPage 185\nAuthorised by the Parliamentary Counsel\n[s 312]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n312 Amendment of long title\nLong title, from ‘, to repeal’—\nomit.\nDivision 2 Amendment of Aboriginal Land Act\n1991\n313 Act amended\nThis division amends the Aboriginal Land Act 1991.\nNote—\nSee also the amendments in schedule 2.\n314 Amendment of pt 21, div 2, hdg (Powers of Supreme\nCourt)\nPart 21, division 2, heading, after ‘Supreme Court’—\ninsert—\nand District Court\n315 Insertion of new s 268A\nBefore section 269—\ninsert—\n268A Definition for division\nIn this division—\ncourt, in relation to a proceeding relating to trust\nproperty of a land trust, means—\n(a) in any case—the Supreme Court; or\n(b) if the value of all the trust property of the\nland trust does not exceed the monetary\nlimit under the District Court of Queensland\nAct 1967, section 68—the District Court.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n\nPage 186\nAuthorised by the Parliamentary Counsel\n[s 316]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n316 Amendment of s 269 (Jurisdiction of Supreme Court)\n(1) Section 269, ‘Supreme Court’—\nomit, insert—\ncourt\n(2) Section 269, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n317 Amendment of sch 1 (Dictionary)\nSchedule 1—\ninsert—\ncourt, in relation to a proceeding relating to trust\nproperty of a land trust, for part 21, division 2, see\nsection 268A.\nDivision 3 Amendment of Corrective Services\nAct 2006\n318 Act amended\nThis division amends the Corrective Services Act 2006.\n319 Amendment of s 311 (Prisoners trust fund)\nSection 311—\ninsert—\n(3A) The Trusts Act 2025 does not apply in relation to\nthe prisoners trust fund.\n320 Amendment of s 315 (Investment of prisoners trust fund)\nSection 315(1)—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n\nPage 187\nAuthorised by the Parliamentary Counsel\n[s 321]\nTrusts Bill 2025\nPart 18 Amendment of Acts\ninsert—\nNote—\nSee section 311(3A) in relation to the non-application of\nthe Trusts Act 2025 to the prisoners trust fund.\n321 Insertion of new s 319KA\nAfter section 319K—\ninsert—\n319KA Relationship with Trusts Act 2025\nThe Trusts Act 2025 does not apply in relation to\na victim trust fund.\nDivision 4 Amendment of District Court of\nQueensland Act 1967\n322 Act amended\nThis division amends the District Court of Queensland Act\n1967.\n323 Amendment of s 68 (Civil jurisdiction)\nSection 68(1)(b)—\ninsert—\n(viiia)for an application under the Trusts Act\n2025 relating to a trust or trust property,\nwhere the value of all the trust property of\nthe trust does not exceed the monetary limit;\n(viiib)for another application under the Trusts Act\n2025, where the value of the property to\nwhich the application relates does not\nexceed the monetary limit;\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27","sortOrder":17},{"sectionNumber":"retrieval-0019","sectionType":"document_chunk","heading":"Document excerpt 19","content":"Page 188\nAuthorised by the Parliamentary Counsel\n[s 324]\nTrusts Bill 2025\nPart 18 Amendment of Acts\nDivision 5 Amendment of Funeral Benefit\nBusiness Act 1982\n324 Act amended\nThis division amends the Funeral Benefit Business Act 1982.\nNote—\nSee also the amendment in schedule 2.\n325 Amendment of s 79 (Application of Trusts Act 1973)\n(1) Section 79, heading, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n(2) Section 79(1), after ‘applies’—\ninsert—\nif a payment is made by or on behalf of a\ncontributor under a funeral benefit agreement\n(3) Section 79(2) and (3)—\nomit, insert—\n(2) The Trusts Act 2025 applies in relation to the\npayment in the way, and to the extent, prescribed\nby regulation.\n326 Replacement of pt 9, hdg (Transitional provisions for\nLiquor and Gaming (Red Tape Reduction) and Other\nLegislation Amendment Act 2013)\nPart 9, heading—\nomit, insert—\nPart 9 Transitional provisions\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nPage 189\nAuthorised by the Parliamentary Counsel\n[s 327]\nTrusts Bill 2025\nPart 18 Amendment of Acts\nDivision 1 Transitional provisions for\nLiquor and Gaming (Red\nTape Reduction) and Other\nLegislation Amendment\nAct 2013\n327 Amendment of s 90 (Definitions for pt 9)\n(1) Section 90, heading, ‘pt 9’—\nomit, insert—\ndivision\n(2) Section 90, ‘part’—\nomit, insert—\ndivision\n328 Insertion of new pt 9, div 2\nPart 9—\ninsert—\nDivision 2 Transitional provisions for\nTrusts Act 2025\n97 Definition for division\nIn this division—\nnew, for a provision of this Act, means the\nprovision as in force from the commencement.\n98 Application of Trusts Act 2025 to particular\npayments made before commencement\nNew section 79(2) applies in relation to a payment\nmade to an entity as mentioned in new section\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nPage 190\nAuthorised by the Parliamentary Counsel\n[s 328]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n79(1) whether the payment was made before or\nafter the commencement.\n99 Continued application of repealed Trusts Act\n1973 in particular circumstances\n(1) This section applies if, on the commencement, a\nregulation under new section 79(2) is not in force.\n(2) Until a regulation under new section 79(2) is first\nin force, the repealed Trusts Act provisions\ncontinue to apply in relation to a payment made to\nan entity as mentioned in new section 79(1) as\nif—\n(a) the Trusts Act 2025 had not been enacted;\nand\n(b) the entity were a trustee, and the payment\nwere trust property, within the meaning of\nthe repealed Trusts Act 1973.\n(3) Subsection (2) applies whether the payment was\nmade before or after the commencement.\n(4) In this section—\nrepealed Trusts Act provisions means the\nfollowing provisions of the repealed Trusts Act\n1973—\n(a) part 1;\n(b) part 2, other than sections 17 and 18;\n(c) part 3, other than sections 28, 30 and 30A;\n(d) part 4, other than sections 32 to 48, 53 and\n57;\n(e) part 5;\n(f) part 6, other than sections 66, 67, 73 to 75\nand 78;\n(g) part 7, other than sections 84, 86 to 89, 93\nand 95;\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 191\nAuthorised by the Parliamentary Counsel\n[s 329]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n(h) part 10, other than sections 114, 116 and\n117.\nDivision 6 Amendment of Public Trustee Act\n1978\n329 Act amended\nThis division amends the Public Trustee Act 1978.\nNote—\nSee also the amendment in schedule 2.\n330 Replacement of s 40 (When public trustee being\ncustodian trustee or statutory trustee may act as general\ntrustee)\nSection 40—\nomit, insert—\n40 When public trustee as custodian trustee may\nact as managing trustee\n(1) This section applies if—\n(a) the public trustee has been appointed under\nthe Trusts Act 2025, section 47 as the\ncustodian trustee of trust property; and\n(b) because of a circumstance mentioned in\nsection 20(1)(a) to (i) of that Act, there is no\nmanaging trustee of the trust capable of\nacting in the execution of the trust.\n(2) Until a new managing trustee of the trust is\nappointed, the public trustee—\n(a) may act as managing trustee of the trust; and\n(b) for that purpose, has all the powers,\nauthorities and discretions of a managing\ntrustee of the trust.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 192\nAuthorised by the Parliamentary Counsel\n[s 331]\nTrusts Bill 2025\nPart 18 Amendment of Acts\nNote—\nSee the Trusts Act 2025, section 49.\n(3) However, the public trustee is not required to act\nin the execution of the trust.\n(4) This section does not affect the power of any court\nor person to appoint a new managing trustee of the\ntrust, but an appointment of a managing trustee\ndoes not take effect until written notice of the\nappointment is given to the public trustee.\n(5) In this section—\nmanaging trustee see the Trusts Act 2025, section\n46.\n40A When public trustee as statutory trustee may\nact as trustee\n(1) This section applies if, apart from this section, the\npublic trustee is a statutory trustee within the\nmeaning of the Trusts Act 2025.\n(2) Until a new trustee of the trust is appointed, the\npublic trustee—\n(a) may act as a trustee of the trust who is not a\nstatutory trustee; and\n(b) for that purpose, has all the powers,\nauthorities and discretions of a trustee who\nis not a statutory trustee within the meaning\nof the Trusts Act 2025.\n331 Insertion of new pt 10, div 4\nPart 10—\ninsert—\nDivision 4 Transitional provisions for\nTrusts Act 2025\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nPage 193\nAuthorised by the Parliamentary Counsel\n[s 332]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n150 When public trustee as custodian trustee may\nact as managing trustee—existing\nappointment\nSection 40, as inserted by the Trusts Act 2025,\napplies as if—\n(a) the reference in section 40(1)(a) to the\nTrusts Act 2025, section 47 included a\nreference to the repealed Trusts Act 1973,\nsection 19; and\n(b) the reference in section 40(1)(b) to the\nTrusts Act 2025, section 20(1)(a) to (i)\nincluded a reference to the repealed Trusts\nAct 1973, section 12(1)(a) to (h) or (3).\n151 Application of former s 40(3) to particular\nstatutory trustees\n(1) This section applies if, immediately before the\ncommencement, the public trustee was, apart\nfrom former section 40(3), a statutory trustee\nwithin the meaning of the repealed Trusts Act\n1973 of land mentioned in section 6(1)(a) of that\nAct.\n(2) Former section 40(3) continues to apply to the\npublic trustee as if the Trusts Act 2025 had not\nbeen enacted.\n(3) In this section—\nformer section 40(3) means section 40(3) as in\nforce immediately before the commencement.\nDivision 7 Amendment of River Improvement\nTrust Act 1940\n332 Act amended\nThis division amends the River Improvement Trust Act 1940.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nPage 194\nAuthorised by the Parliamentary Counsel\n[s 333]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n333 Insertion of new s 5BA\nAfter section 5B—\ninsert—\n5BA Relationship with Trusts Act 2025\nThe Trusts Act 2025, section 14 does not apply to\na trust established under this Act.\n334 Replacement of pt 9, hdg (Transitional provision for Water\nLegislation Amendment Act 2016)\nPart 9, heading—\nomit, insert—\nPart 9 Transitional and\nvalidation provisions\nDivision 1 Transitional provision for\nWater Legislation\nAmendment Act 2016\n335 Insertion of new pt 9, div 2\nPart 9—\ninsert—\nDivision 2 Validation provision for\nTrusts Act 2025\n25 Relationship with repealed Trusts Act 1973\nThe repealed Trusts Act 1973, section 11 is\ntaken—\n(a) never to have applied to a trust established\nunder this Act; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nPage 195\nAuthorised by the Parliamentary Counsel\n[s 336]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n(b) never to have affected the appointment of a\nmember of a trust made, before the\ncommencement of this section, under part 3,\ndivision 1 of this Act.\nDivision 8 Amendment of Succession Act 1981\n336 Act amended\nThis division amends the Succession Act 1981.\nNote—\nSee also the amendments in schedule 2.\n337 Insertion of new ss 49B–49D\nAfter section 49A—\ninsert—\n49B Power to carry on business\n(1) This section applies if, at the time of a deceased\nperson’s death, the person was engaged in\ncarrying on a business.\n(2) The personal representative of the deceased\nperson may carry on the business, but only for—\n(a) the period, of not more than 2 years from the\ndeceased person’s death, that is reasonably\nnecessary for realising the business; and\n(b) any further period approved by the court\nunder section 49D.\n(3) For the purpose of carrying on the business, the\npersonal representative may—\n(a) use any part of the deceased person’s estate\nthat is reasonably necessary; and\n(b) increase or reduce, as necessary, usage of\nthe estate under paragraph (a); and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n\nPage 196\nAuthorised by the Parliamentary Counsel\n[s 337]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n(c) buy stock, machinery, implements and\nchattels; and\n(d) employ the managers, agents, workers and\nother persons the personal representative\nconsiders appropriate; and\n(e) at any time, enter into a partnership\nagreement to take the place of any\npartnership agreement in effect immediately\nbefore, or at any time after, the deceased\nperson’s death; and\n(f) enter into sharefarming agreements.\n(4) For subsection (3)(e), it does not matter that the\npersonal representative was a partner of the\ndeceased person in the personal representative’s\nown right.\n(5) Nothing in this section affects any other authority\nto do the acts authorised to be done under this\nsection.\n(6) If the deceased person’s estate is being\nadministered under the deceased person’s will,\nthis section is subject to a contrary intention\nappearing in the will.\n(7) Without limiting subsection (6), a provision of the\ndeceased person’s will that confers on the\npersonal representative the power to postpone the\nsale of any relevant business property is, for that\nsubsection, taken to be a contrary intention\nappearing in the deceased person’s will.\n(8) This section applies—\n(a) despite the Trusts Act 2025, sections 82 and\n83; but\n(b) subject to the other provisions of the Trusts\nAct 2025 and any other Act.\n(9) In this section—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n34\n\nPage 197\nAuthorised by the Parliamentary Counsel\n[s 337]\nTrusts Bill 2025\nPart 18 Amendment of Acts\nrelevant business property, in relation to a\ndeceased person, means property that, at the time\nof the deceased person’s death, was being used by\nthe person in carrying on a business.\nNote—\nSee, however, the Trusts Act 2025, section 264 in\nrelation to the continued application of the repealed\nTrusts Act 1973, section 57 to a trustee who,\nimmediately before the commencement, was carrying\non a business under that section.\n49C Power to subscribe to particular funds if\ncarrying on business\n(1) This section applies if the personal representative\nof a deceased person is carrying on a business\nunder section 49B.\n(2) The personal representative may subscribe to a\nrelevant fund in connection with the business if\nthe personal representative considers it would, if\nthe personal representative were acting for\nthemself, be prudent to subscribe to the fund.\n(3) Subscriptions to the relevant fund must be paid\nfrom the business income of the deceased\nperson’s estate.\n(4) This section does not affect any other authority\nthe personal representative may have to subscribe\nto the relevant fund.\n(5) If the deceased person’s estate is being\nadministered under the deceased person’s will,\nthis section is subject to a contrary intention\nappearing in the will.\n(6) In this section—\nrelevant fund, in connection with a business,\nmeans a fund that—\n(a) is created for objects or purposes in support\nof any business of a similar nature; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n34\n35\n\nPage 198\nAuthorised by the Parliamentary Counsel\n[s 338]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n(b) is subscribed to by other persons engaged in\na similar business.\n49D Court may approve period for carrying on\nbusiness\n(1) This section applies if, at the time of a deceased\nperson’s death, the person was engaged in\ncarrying on a business.\n(2) The court may, on application by the personal\nrepresentative of the deceased person or a\nbeneficiary of the deceased person’s estate—\n(a) by order, approve that the personal\nrepresentative may carry on the business for\na stated period, including on the conditions\nthe court considers appropriate; and\n(b) make the order retrospective to a stated date.\n(3) An application for an order under subsection (2)\nmay be made at any time, whether or not any\nprevious authority to carry on the business,\nincluding a previous approval under this section,\nhas ended.\n338 Insertion of new s 53A\nAfter section 53—\ninsert—\n53A Protection of personal representatives for\ncalls made after transfer of shares\n(1) This section applies if, on a deceased person’s\ndeath, the person was registered as the holder of\nshares in a company that have not been fully paid\nup.\n(2) The personal representative of the deceased\nperson may distribute the deceased person’s\nestate as soon as the personal representative has\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 199\nAuthorised by the Parliamentary Counsel\n[s 339]\nTrusts Bill 2025\nPart 18 Amendment of Acts\nobtained the registration of some other person as\nthe holder of the shares.\n(3) It is not necessary for a distribution under\nsubsection (2) for the personal representative to\nreserve any portion of the estate for the payment\nof calls made after the date of the registration,\nwhether the call is made by the company or its\ndirectors or by its liquidator in a winding-up.\n(4) This section does not affect any right the company\nor its liquidator may have to follow the assets of\nthe deceased person’s estate into the hands of the\npersons to whom the assets have been distributed.\n(5) In this section—\npersonal representative, of a deceased person,\nincludes a trustee of the will or estate of the\ndeceased person.\n339 Insertion of new s 61AA\nAfter section 61—\ninsert—\n61AA Abolition of rule in Allhusen v Whittell\n(1) This section applies if—\n(a) under the will of a person who dies on or\nafter 1 July 1973, any property included in a\ndisposition of the residuary estate is settled\nin succession (the settled property); and\n(b) income is derived from the settled property.\n(2) The personal representative of the deceased\nperson must not apply any part of the income of\nthe settled property to pay any of the following\n(each a capital expense)—\n(a) the debts and liabilities that have accrued at\nthe date of the deceased person’s death;\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n\nPage 200\nAuthorised by the Parliamentary Counsel\n[s 339]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n(b) the funeral, testamentary and administration\nexpenses;\n(c) any legacies bequeathed by the will.\n(3) Subsection (2) does not apply in relation to—\n(a) any commission payable to the personal\nrepresentative in relation to the income of\nthe settled property; or\n(b) any testamentary or administration expenses\nthat, apart from that subsection, would be\npayable wholly out of income.\n(4) The personal representative must—\n(a) apply the income of the settled property, in\npriority to any other property, to pay the\ninterest (if any) that accrues on a capital\nexpense after the date of the deceased\nperson’s death and up to the payment of the\ncapital expense; and\n(b) pay the balance of the income of the settled\nproperty to the person for the time being\nentitled to the income.\n(5) If, after the deceased person’s death, income is\nderived from property that is ultimately applied\n(wholly or in part) to pay a capital expense, for\nthis section, the income is taken to be income of\nthe residuary estate.\n(6) This section—\n(a) affects only the rights of the beneficiaries\nunder the deceased person’s will; and\n(b) does not affect the rights of creditors of the\ndeceased person’s estate.\n(7) This section applies subject to—\n(a) a contrary intention appearing in the\ndeceased person’s will; and\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n32\n33\n\nPage 201\nAuthorised by the Parliamentary Counsel\n[s 340]\nTrusts Bill 2025\nPart 18 Amendment of Acts\n(b) the provisions of any Act about charges on\nthe property of the deceased person’s estate.\n(8) In this section—\npersonal representative, of a deceased person,\nincludes a trustee of the will of the deceased\nperson.\nDivision 9 Amendment of Torres Strait Islander\nLand Act 1991\n340 Act amended\nThis division amends the Torres Strait Islander Land Act\n1991.\nNote—\nSee also the amendments in schedule 2.\n341 Amendment of pt 15, div 2, hdg (Powers of Supreme\nCourt)\nPart 15, division 2, heading, after ‘Supreme Court’—\ninsert—\nand District Court\n342 Insertion of new s 173A\nBefore section 174—\ninsert—\n173A Definition for division\nIn this division—\ncourt, in relation to a proceeding relating to trust\nproperty of a land trust, means—\n(a) in any case—the Supreme Court; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26","sortOrder":18},{"sectionNumber":"retrieval-0020","sectionType":"document_chunk","heading":"Document excerpt 20","content":"Page 202\nAuthorised by the Parliamentary Counsel\n[s 343]\nTrusts Bill 2025\nPart 19 Other amendments\n(b) if the value of all the trust property of the\nland trust does not exceed the monetary\nlimit under the District Court of Queensland\nAct 1967, section 68—the District Court.\n343 Amendment of s 174 (Jurisdiction of Supreme Court)\n(1) Section 174, ‘Supreme Court’—\nomit, insert—\ncourt\n(2) Section 174, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n344 Amendment of sch 1 (Dictionary)\nSchedule 1—\ninsert—\ncourt, in relation to a proceeding relating to trust\nproperty of a land trust, for part 15, division 2, see\nsection 173A.\nPart 19 Other amendments\n345 Legislation amended\nSchedule 2 amends the legislation it mentions.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n\nSchedule 1\nTrusts Bill 2025\nPage 203\nAuthorised by the Parliamentary Counsel\nSchedule 1 Dictionary\nsection 5\nable and willing to act, as appointor for a trust, for part 3, see\nsection 18.\naccountant means—\n(a) a member of CPA Australia who is entitled to use the\nletters ‘CPA’ or ‘FCPA’; or\n(b) a member of Chartered Accountants Australia and New\nZealand who is entitled to use the letters ‘CA’ or ‘FCA’;\nor\n(c) a member of the Institute of Public Accountants who is\nentitled to use the letters ‘MIPA’ or ‘FIPA’.\nadministrator means—\n(a) an administrator under the Guardianship and\nAdministration Act 2000 appointed for 1 or more\nfinancial matters for a person; or\n(b) another person authorised by an order registered under\nthe Guardianship and Administration Act 2000, section\n169 to do anything in relation to 1 or more financial\nmatters for a person.\nadvancement, in relation to a person, includes benefit.\nagent means an agent appointed under section 107.\nappointor, for a trust, means a person nominated in the trust\ninstrument for the purpose of appointing new trustees of the\ntrust.\napprehended decision, for part 11, division 9, see section\n187(1)(b)(ii).\napproved form means a form approved under section 219.\nattorney means a person appointed as an attorney, and\nauthorised to do anything in relation to 1 or more financial\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nSchedule 1\nTrusts Bill 2025\nPage 204\nAuthorised by the Parliamentary Counsel\nmatters for another person, by an enduring power of\nattorney—\n(a) made by the other person under the Powers of Attorney\nAct 1998; or\n(b) made by the other person in another jurisdiction and\nrecognised under section 34 of that Act.\nbenefit, in relation to the advancement of a person, includes\ninsurance on the life of the person.\ncapacity, for a matter, see section 10(1).\nChapter 5 body corporate see the Corporations Act, section 9.\ncharitable see section 11.\ncharitable trust means a trust created for a charitable purpose.\ncharity means an institution, whether or not incorporated, that\nis established for a charitable purpose.\nclaim, in relation to a trust, for part 9, division 2, see section\n137.\nclaimant—\n(a) for part 9, division 2—see section 137; or\n(b) for part 9, division 3—see section 143(1)(b).\ncontingent right, in relation to land, includes—\n(a) a contingent or executory interest and a possibility\ncoupled with an interest, whether or not the object of the\ngift or limitation of the interest or possibility is\nascertained; and\n(b) a right of entry, whether immediate or future, and\nwhether vested or contingent.\ncontinuing trustee includes a surviving trustee.\ncourt means—\n(a) in relation to any matter under this Act—the Supreme\nCourt; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n\nSchedule 1\nTrusts Bill 2025\nPage 205\nAuthorised by the Parliamentary Counsel\n(b) in relation to a matter under this Act for which the\nDistrict Court has jurisdiction under the District Court\nof Queensland Act 1967—the District Court.\ncreate, a trust, includes establish a trust.\ncustodian trustee means a corporation appointed as a\ncustodian trustee under section 47.\ndeductible gift recipient, for part 13, see section 212.\ndelegate—\n(a) for part 7, division 4, generally—see section 95(4)(b); or\n(b) for part 7, division 4, subdivision 4—see section 103.\neligible recipient, for part 13, see section 212.\nentitled person, for part 7, division 3, see section 90(1)(a) and\n(b).\nextension application, for part 7, division 3, see section 89(4).\nfinancial matter—\n(a) in relation to an adult for whom an attorney is\nappointed—see the Powers of Attorney Act 1998,\nschedule 2, section 1; or\n(b) in relation to any other adult—see the Guardianship and\nAdministration Act 2000, schedule 2, section 1.\ngovernment entity, for part 13, see section 212.\nguardian, in relation to a child, means—\n(a) a parent of the child; or\n(b) another person who has the legal parental responsibility\nfor making decisions about the long-term care,\nwellbeing and development of the child.\nimpaired capacity, for a matter, see section 10(2).\ninstrument of change, for part 3, division 5, see section 32(1).\ninstrument of delegation, for part 7, division 4, see section\n95(2).\ninterested person, for part 7, division 3, see section 88(2).\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nSchedule 1\nTrusts Bill 2025\nPage 206\nAuthorised by the Parliamentary Counsel\ninvestment power, for part 6, see section 66.\nlast continuing trustee includes a sole trustee.\nlease includes bailment.\nlicensed trustee company see the Corporations Act, section 9.\nmanagement power, in relation to a trust, for part 11, division\n6, see section 178.\nmanaging trustee, of a trust, see section 46.\nminimum trustee requirements, for a trust, for part 3, division\n3, see section 27.\nmortgage debt, for part 7, division 6, see section 110(1)(a).\npayment, in relation to securities, includes the deposit or\ntransfer of the securities.\npossessed, of property, for part 11, see section 162.\npost-change trustee, in relation to an instrument of change,\nfor part 3, division 5, see section 33.\npotential claimant, for part 9, division 2, see section 137.\npre-change trustee, in relation to an instrument of change, for\npart 3, division 5, see section 33.\nprescribed power, for a prescribed trust, for part 13, see\nsections 213(2) and 214(3).\nprescribed trust, for part 13, see section 212.\nprimary beneficiary, in relation to a mortgage debt held on\ntrust for persons in succession, for part 7, division 6, see\nsection 109.\npriority outgoing, in relation to land the subject of a\nmortgage, for part 7, division 6, see section 109.\nprofessional charges, of a professional trustee, for part 10,\nsee section 158.\nprofessional investor, for part 6, see section 66.\nprofessional trustee—\n(a) for part 5—see section 59; or\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nSchedule 1\nTrusts Bill 2025\nPage 207\nAuthorised by the Parliamentary Counsel\n(b) for part 10—see section 158.\nprotective trust, for part 11, division 7, see section 182.\npublic trustee means the public trustee under the Public\nTrustee Act 1978.\nrecipient, for part 9, division 3, see section 143(2).\nrelevant capital, for part 8, see section 128(2).\nrelevant decision, for part 11, division 9, see section\n187(1)(b)(i).\nrelevant power, in relation to a trustee or another person, for\npart 11, division 9, see section 186.\nrelevant registrar means—\n(a) in relation to land—the registrar under the Land Title\nAct 1994 or other person having the function of\nregistering or recording dealings with the land; or\n(b) in relation to a water allocation—the registrar under the\nWater Act 2000.\nrelevant trust, for part 13, see section 212.\nrequirement, of another Act or of a law of another State or the\nCommonwealth, includes a requirement the other Act or law\nauthorises or permits to be imposed.\nsale, of property, includes an exchange of property.\nsecurities includes stock and debentures.\nstated circumstances, in relation to the delegation of a matter,\nfor part 7, division 4, see section 95(4)(a).\nstatutory trustee see section 7(2).\nstock includes shares.\ntrust see section 6.\ntrustee—\n(a) generally—see section 7(1); or\n(b) for part 5—see section 59; or\n(c) for part 10—see section 158.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\nSchedule 1\nTrusts Bill 2025\nPage 208\nAuthorised by the Parliamentary Counsel\ntrustee corporation means—\n(a) the public trustee; or\n(b) a licensed trustee company.\ntrust instrument see section 8.\ntrust property see section 9.\nvariation application, for part 7, division 3, see section\n89(1)(a).\nvesting order see section 171(1).\nwater allocation means a water allocation under the Water Act\n2000.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n\nSchedule 2\nTrusts Bill 2025\nPage 209\nAuthorised by the Parliamentary Counsel\nSchedule 2 Other amendments\nsection 345\nAboriginal Land Act 1991\n1 Part 21, heading, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n2 Section 267, heading, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n3 Section 267(1), (2) and (3), ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n4 Section 268, heading, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n5 Section 268(1), ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n\nSchedule 2\nTrusts Bill 2025\nPage 210\nAuthorised by the Parliamentary Counsel\n6 Sections 270(1), 271(2) and 272(1), ‘Supreme Court’—\nomit, insert—\ncourt\n7 Section 273(1), ‘Supreme Court’s’—\nomit, insert—\ncourt’s\n8 Sections 273, 274(1), 275 and 276, ‘Supreme Court’—\nomit, insert—\ncourt\nBuilding Industry Fairness (Security of Payment) Act\n2017\n1 Section 56A, heading, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n2 Section 56A, ‘the Trusts Act 1973’—\nomit, insert—\nthe Trusts Act 2025\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n\nSchedule 2\nTrusts Bill 2025\nPage 211\nAuthorised by the Parliamentary Counsel\nCharitable Funds Act 1958\n1 Section 3(3), ‘the Supreme Court or of any judge’—\nomit, insert—\nthe Supreme Court or the District Court, or the\npowers of the Attorney-General,\n2 Section 3(3)—\ninsert—\nNote—\nSee the Trusts Act 2025, part 12, division 3 in relation to\nthe approval of particular schemes by the Supreme\nCourt, the District Court and the Attorney-General.\n3 Section 21(c), from ‘is vested in any persons’—\nomit, insert—\nis vested in any persons—\n(i) the order vesting the property has the same\neffect as if it were a vesting order under the\nTrusts Act 2025 made in relation to property\nof the same type; and\n(ii) the Trusts Act 2025, part 11, division 4\napplies, with any necessary modifications,\nin relation to the order as if it were a vesting\norder mentioned in subparagraph (i);\nFuneral Benefit Business Act 1982\n1 Section 40(1)(a), ‘Trusts Act 1973, part 3’—\nomit, insert—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n25\n\nSchedule 2\nTrusts Bill 2025\nPage 212\nAuthorised by the Parliamentary Counsel\nTrusts Act 2025, part 6\nGuardianship and Administration Act 2000\n1 Schedule 4, definition authorised investment, paragraph\n(a), from ‘would be’—\nomit, insert—\nwould be an investment in accordance with the\nTrusts Act 2025; or\nLand Act 1994\n1 Section 90, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\nLand Valuation Act 2010\n1 Section 210(2)—\nomit, insert—\n(2) Despite the Trusts Act 2025, section 78(3), the\nvaluer-general’s certificate is taken to be an\nindependent valuation of the property for section\n78(2)(a) of that Act.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n\nSchedule 2\nTrusts Bill 2025\nPage 213\nAuthorised by the Parliamentary Counsel\n2 Section 210(4), definition trustee, ‘Trusts Act 1973,\nsection 5’—\nomit, insert—\nTrusts Act 2025, section 7(1)\nLegal Aid Queensland Act 1997\n1 Section 45(2), ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\nLimitation of Actions Act 1974\n1 Section 5(1), definition trust, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025, section 6\n2 Section 5(1), definition trustee, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025, section 7(1)\nNature Conservation Act 1992\n1 Section 31(5), ‘Trusts Act 1973’—\nomit, insert—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n\nSchedule 2\nTrusts Bill 2025\nPage 214\nAuthorised by the Parliamentary Counsel\nTrusts Act 2025\nPowers of Attorney Act 1998\n1 Section 84(3), definition authorised investment,\nparagraph (a), from ‘would be’—\nomit, insert—\nwould be an investment in accordance with the\nTrusts Act 2025; or\nProperty Law Act 1974\n1 Section 38(3A), ‘Trusts Act 1973, section 90’—\nomit, insert—\nTrusts Act 2025, sections 173 to 175\n2 Section 222(2), ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\nProperty Law Act 2023\n1 Section 38(1), ‘Trusts Act 1973, section 90’—\nomit, insert—\nTrusts Act 2025, sections 173 to 175\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n\nSchedule 2\nTrusts Bill 2025\nPage 215\nAuthorised by the Parliamentary Counsel\nPublic Trustee Act 1978\n1 Sections 19(1)(d) and 41(7), ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\nRetirement Villages Act 1999\n1 Sections 95 and 101, ‘an authorised investment under the\nTrusts Act 1973.’—\nomit, insert—\nan investment made under the Trusts Act\n2025, section 69 in accordance with the\nduties under—\n(a) sections 70 and 71 of that Act; and\n(b) either—\n(i) part 6, division 2 of that Act; or\n(ii) part 5, division 2 of that Act, to\nthe extent that division applies in\nrelation to the exercise of an\ninvestment power.\n2 Sections 95 and 101—\ninsert—\n(2) In this section—\ninvestment power see the Trusts Act 2025, section\n66.\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n\nSchedule 2\nTrusts Bill 2025\nPage 216\nAuthorised by the Parliamentary Counsel\nSuccession Act 1981\n1 Section 5, definition trustee, paragraph (b), ‘Trusts Act\n1973’—\nomit, insert—\nTrusts Act 2025\n2 Section 6(4), ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n3 Section 36(12), ‘Trusts Act 1973, section 67(3)’—\nomit, insert—\nTrusts Act 2025, section 136(1)\n4 Section 45(5), ‘and notwithstanding the provisions of the\nTrusts Act 1973, section 16,’—\nomit.\n5 Section 49(1), ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\nTorres Strait Islander Land Act 1991\n1 Section 155(2), note—\nomit, insert—\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n\nSchedule 2\nTrusts Bill 2025\nPage 217\nAuthorised by the Parliamentary Counsel\nNote—\nSee also section 173 in relation to the application of the\nTrusts Act 2025.\n2 Part 15, heading, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n3 Section 173, heading, ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n4 Section 173(1), (2) and (3), ‘Trusts Act 1973’—\nomit, insert—\nTrusts Act 2025\n5 Sections 175(1), 176(2) and 177(1), ‘Supreme Court’—\nomit, insert—\ncourt\n6 Section 178(1), ‘Supreme Court’s’—\nomit, insert—\ncourt’s\n7 Sections 178, 179(1), 180 and 181, ‘Supreme Court’—\nomit, insert—\ncourt\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n\nSchedule 2\nTrusts Bill 2025\nPage 218\nAuthorised by the Parliamentary Counsel\nTrustee Companies Act 1968\n1 Section 37(2)(a)—\nomit, insert—\n(a) in investments that—\n(i) could be made by a trustee exercising\nan investment power under the Trusts\nAct 2025, part 6; or\n(ii) are authorised by any other Act for the\ninvestment of trust funds; or\nUnited Grand Lodge of Antient Free and Accepted\nMasons of Queensland Trustees Act 1942\n1 Section 3D, heading, ‘Unauthorised’—\nomit, insert—\nParticular\n2 Section 3D, ‘an authorised investment within the meaning\nof the Trusts Act 1973’—\nomit, insert—\na prescribed investment\n3 Section 3D—\ninsert—\n(2) In this section—\ninvestment power see the Trusts Act 2025, section\n66.\nprescribed investment means an investment made\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n19\n20\n21\n22\n23\n24\n\nSchedule 2\nTrusts Bill 2025\nPage 219\nAuthorised by the Parliamentary Counsel\nunder the Trusts Act 2025, section 69 in\naccordance with the duties under—\n(a) sections 70 and 71 of that Act; and\n(b) either—\n(i) part 6, division 2 of that Act; or\n(ii) part 5, division 2 of that Act, to the\nextent that division applies in relation\nto the exercise of an investment power.\n© State of Queensland 2025\n1\n2\n3\n4\n5\n6\n7\n8","sortOrder":19}],"analysis":{"summary":{"status_summary":"The Trusts Bill 2025 has received royal assent and will commence on a day to be fixed by proclamation, replacing the Trusts Act 1973.","complexity_score":8,"likely_questions":["When exactly will the Trusts Act 2025 commence?","Does the new Act apply to trusts I already have set up?","What are the key changes to trustee investment powers compared to the old Act?","How does the new prescribed amount for capital advancement work and how is it indexed?","Can a local government still act as a trustee under the new Act?","What happens to proceedings started under the Trusts Act 1973?","Are there any changes to the limit on the number of trustees?"],"complexity_factors":["Replaces an entire trust Act (1973) with a completely new, much longer framework covering 18 parts and over 300 sections","Codifies multiple common law duties and introduces tiered standards of care depending on trustee status","Includes extensive transitional provisions that preserve the old Act for many pre-commencement actions and proceedings","Amends more than a dozen other Queensland Acts, requiring cross-referencing between statutes","Introduces new concepts such as the 'prescribed amount' for capital advancement indexed to CPI","Contains detailed court powers, vesting orders, and variation of trust provisions that interact with existing rules of equity"],"plain_english_summary":"The Trusts Bill 2025 repeals the Trusts Act 1973 and modernises Queensland trust law, applying to most existing and future trusts and binding the State. It affects trustees (including professional, public and local government trustees), beneficiaries, appointors, estate reps and advisers.\n\nThe Act overhauls trustee appointment/removal, codifies duties and an expanded investment regime, introduces default trustee limits, broad court powers and transitional rules, and will commence by proclamation."},"flash_summary":{"complexity_score":9,"scope_assessment":{"changed":true,"description":"Yes. The Bill extends and restructures the scope of trust law beyond a straight codification of pre‑existing rules. Notable expansions include: (1) a statutory cap on trustees for most private trusts (4 trustees) with a court approval exit (ss 14–15); (2) a formal, statutory custodian‑managing trustee model that reallocates legal title and operational responsibilities and creates express liability allocations (pts 4, ss 46–57); (3) an express administrative cy pres approval path via the Attorney‑General for smaller charitable schemes (ss 202–208) in addition to the court pathway; (4) new permissive provisions allowing prescribed philanthropic trusts to give to certain government‑linked entities (pt 13, ss 212–215); and (5) a default vesting mechanism to the public trustee when the last continuing trustee dies (ss 37–43). The Act also introduces modern investment, delegation and review duties (pts 5–6) and indexed monetary caps for capital advances (ss 128–131). These are substantive departures from simply restating existing law and broaden both administrative and executive roles while creating new statutory processes and duties that materially change the operating environment for trustees, beneficiaries, charities and third parties."},"complexity_factors":["Large scale replacement statute: wholly repeals and replaces Trusts Act 1973 (s 220) — many legacy interactions","Extensive length and structure: 19 Parts with many Divisions and Sections (major Parts on trusteeship, investments, court powers, charitable trusts and transitional regimes)","Numerous defined terms (Schedule 1) and tiered definitions across Parts (eg trustee, professional trustee, professional investor, prescribed trust)","Heavy cross‑referencing to other Queensland and Commonwealth Acts (see schedule 2 amendments and multiple notes throughout)","Layered conditional logic and exceptions (eg default rules overridden by contrary trust instrument, court orders or special statutory routes)","Multiple procedural paths for the same outcome (court appointment v appointor v public trustee v Attorney‑General cy pres route)","Nested protections and revocation rules for delegation (ss 95–106) with safe harbours for third parties and conditional liability provisions (ss 98, 104–106)","Extensive transitional and validation provisions spanning dozens of sections to preserve pre‑existing arrangements (Part 17 and schedule 2)","Significant judicial discretion (Part 11) combined with an administrative approval path (Attorney‑General) for some charitable schemes (ss 201–211), increasing interpretive complexity"],"plain_english_summary":"**What this Bill does (mechanically)\n\n- Replaces the existing Queensland Trusts Act (1973) with a modern Trusts Act 2025 (see s 220 — repeal). It is a comprehensive code covering trusteeship, appointment and removal of trustees, trustee duties, investment powers and limits, delegation, custodian trustees, private trusts (including maintenance and advancement powers), charitable trusts (including cy pres schemes), statutory trustees and court powers (parts 1–19).  \n\n- Establishes who can and cannot be a trustee and limits the default number of trustees to four for most private trusts (ss 13–15). The court may approve more than four in specific cases (s 15).  \n\n- Sets out a step-by-step statutory process for appointing, replacing, removing and vesting trustees, including special rules where the \"last continuing trustee\" dies, becomes incapacitated or insolvent (ss 17–43). If there is no replacement trustee the trust property may vest in the public trustee temporarily (ss 37–43).  \n\n- Creates a formal role for custodian trustees (corporate custodians) and defines the relationship and liability split between a custodian (holds legal title) and the managing trustees (retain management powers) (pts 4, ss 46–57).  \n\n- Prescribes trustee duties and a three‑tier standard of care depending on whether the trustee is a professional trustee, a non‑professional trustee who holds out as having special skill, or an ordinary trustee (pts 5 and 6: ss 59–69). It requires record‑keeping (ss 64–65), annual review of investments (s 73), and sets out matters trustees must have regard to when investing (s 71).  \n\n- Gives trustees wide express powers to invest in any form of investment subject to duties and to delegation, with protections for third parties (ss 69–81; ss 94–106). It includes modern technical rules (eg RITS securities treated as underlying securities — s 74) and expressly permits trustees to provide a residence for a beneficiary (s 75) (a power trust instruments cannot forbid).  \n\n- Updates rules on using trust income and capital for maintenance, education and advancement. Trustees may apply income to children and some adults (ss 124–127). Trustees may use capital up to a capped amount (the greater of one‑half of the relevant capital or a prescribed dollar amount indexed by CPI — ss 128–131); the court may authorise more (s 128(5)). Trustees can impose and later waive conditions on advances (ss 132–134).  \n\n- Reworks protections for trustees and third parties when distributing trust property (notice scheme, closing day, and defenses to recipients) and creates statutory procedures for addressing claims against trust property (pts 9 and 11: ss 135–156; 163–193).  \n\n- Provides a statutory procedure for variation and cy pres schemes for charitable trusts, including a new administrative path where trustees may apply to the Attorney‑General to approve modest cy pres schemes (ss 201–211) (court remains an available route and appeals are permitted — s 208).  \n\n- Introduces a new class of \"prescribed trusts\" for certain philanthropic funds and permits particular gifts to \"eligible recipients\" (including some entities that are not charities because of government connection) subject to statutory limits and construction rules (pt 13: ss 212–215).  \n\n- Grants broad court powers to appoint and remove trustees, make vesting orders, expand or limit trustee powers, vary trusts, and give directions; the Act sets out who may apply and the processes (pt 11: ss 163–193).  \n\n- Includes extensive transitional provisions to carry over or validate pre‑existing arrangements under the repealed Act and amends a number of other Queensland Acts to reference the new Act (pt 17 and schedule 2).\n\nWho this affects\n\n- Trustees (individuals, trustee corporations, public trustee, custodian trustees) — new duties, procedures for appointment/removal, and clearer investment and delegation rules (pts 2–7).  \n- Beneficiaries (adults, children, life tenants) — clearer rights to inspect accounts (s 65), to receive maintenance or advancement (pts 8), and to bring or be notified of court applications (pt 11).  \n- Professional trustees and licensed trustee companies — explicit standards for remuneration, duties and professional‑level care (ss 59, 159–161).  \n- Public Trustee — new default vesting role when last continuing trustee dies (ss 38–43) and transitional arrangements (pt 17).  \n- Charity sector and philanthropic funds — new cy pres procedures (pt 12) and specific rules allowing particular philanthropic funds to make payments to government‑connected or government‑like entities (pt 13).  \n- Third parties dealing with trustees (purchasers, mortgagees, agents) — new statutory protections and safe harbours (eg ss 103–106, 152–154).  \n\nWhy it matters (stated purpose claims and tests against costs, incentives and trade‑offs)\n\n- Stated purpose claims: the Bill modernises, clarifies and consolidates trust law (through codified trustee duties, updated investment regime, delegation rules, custodian trustee structure and streamlined court and administrative routes for cy pres). The Act also intends to reduce uncertainty for third parties and to provide practical tools for trustees (eg vesting and delegation rules, annual investment reviews). These effects appear in the mechanics above (see, for example, duty tiers: ss 60–62; investment duties and review: ss 71–73; delegation protections: ss 95–106).  \n\n- Implementation and compliance costs: trustees (especially small private trustees) will face increased compliance tasks — keeping records for at least 3 years (s 64), annual investment reviews (s 73), and stronger duties of care tied to professional status (ss 59–62). Professional trustees face consistent regulation of remuneration (pt 10). Court‑approval mechanisms (eg for >4 trustees — s 15; for enlarging management powers — s 179) will create transactional costs where parties need judicial orders.  \n\n- Incentives and behaviour changes: the 4‑trustee default (s 14) concentrates decisionmaking unless parties use the court process to expand trusteeship (s 15). The statutory vesting to the public trustee on death of the last continuing trustee (ss 37–43) reduces gaps but creates an incentive to draft clear succession/appointor clauses to avoid temporary public vesting. The custodian trustee model (pt 4) facilitates use of corporate custodians while shifting management responsibility to managing trustees (ss 49–52) — this allocates legal title and operational responsibility but may increase demand for professional managing trustees.  \n\n- Effects on private enterprise and markets: the broad investment powers (s 69) broaden what trustees and trustee companies may do (subject to duties in s 71). Section 75 explicitly allows trustees to secure residences for beneficiaries — relevant to retirement village and elder care markets and intersects with other legislation (note Protective reference to Retirement Villages Act are preserved — s 75(5)). The new rules allowing certain prescribed philanthropic funds to gift to government‑connected entities (pt 13) may shift where philanthropic capital flows.  \n\n- Judicial and executive discretion: the Act expands court powers (pt 11) and creates an administrative cy pres path through the Attorney‑General for smaller charitable schemes (ss 202–208). The latter may reduce court workload but places substantive decisions in an executive office with procedural checks (public notice and right of appeal to the Supreme Court — s 208).  \n\n- Concentrated benefits, diffuse costs and capture risks:  \n  - Concentrated benefits: professional trustee businesses, licensed trustee companies, and corporations acting as custodian trustees gain clearer powers and limited liability protections (pts 4, 5, 10).  \n  - Diffuse costs: small private trustees and individual beneficiaries may face higher compliance burdens (records, reviews, formal notice and application processes).  \n  - Capture risks: the Attorney‑General approval path for cy pres schemes introduces an executive decision point (ss 202–206). The Act mitigates this with public notice, submissions and an appeal route (ss 203, 206–208) but the change shifts some power out of the courts.  \n\n- Implementation risk and opportunity costs: the Bill is long and cross‑references many other Acts (see schedule 2). Practitioners should expect an initial period of uncertainty and an increase in court and administrative filings while practice and precedent develop. The statutory layers (delegation, custodian trustees, court channels, transitional rules) improve clarity in the long run but raise short‑term costs to update trust instruments and operational practices.\n\nKey sections to look at first if you are affected: trustee limits and appointment (ss 13–26), vesting and public trustee (ss 37–43), custodian trustees (ss 46–57), trustee duties and investments (pts 5–6: ss 59–76), maintenance/advancement caps (ss 128–131), delegation and third party protections (ss 95–106), cy pres and Attorney‑General route (ss 201–211), transitional provisions and repeal (pt 17 and s 220)."}},"importantCases":[],"_links":{"self":"/api/acts/trusts-bill-2025","history":"/api/acts/trusts-bill-2025/history","analysis":"/api/acts/trusts-bill-2025/analysis","conflicts":"/api/acts/trusts-bill-2025/conflicts","importantCases":"/api/acts/trusts-bill-2025/important-cases","documents":"/api/acts/trusts-bill-2025/documents"}}