Trusts Bill 2025

Queensland Trusts Bill 2025

Queensland Trusts Bill 2025 Contents Page Part 1 Preliminary Division 1 Introduction 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 3 Application of Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 4 Act binds all persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Division 2 Interpretation 5 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 6 Meaning of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 7 Meaning of trustee and statutory trustee . . . . . . . . . . . . . . . . . . . 21 8 Meaning of trust instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 9 Meaning of trust property and references to trust property . . . . . 22 10 Meaning of capacity and impaired capacity . . . . . . . . . . . . . . . . 23 11 Meaning of charitable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 12 References to security when lending or investing trust funds . . . 24 Part 2 Restrictions on appointment of trustees and related matters 13 Persons who can not be appointed as trustees . . . . . . . . . . . . . 24 14 Limit on number of trustees of particular trusts . . . . . . . . . . . . . . 25 15 Court approval of more than 4 trustees for particular trusts . . . . 26 16 Local government trustees may act in administration of trusts . . 27 Part 3 Appointment, discharge and removal of trustees and devolution of trusts Division 1 Preliminary 17 Application of part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 18 When appointors are not able and willing to act . . . . . . . . . . . . . 28 Division 2 Appointment of trustees 19 Application of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Contents Trusts Bill 2025 Page 2 Authorised by the Parliamentary Counsel 20 Appointment of trustees—replacement of trustee in particular circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 21 Appointment of trustees—replacement of last continuing trustee who is dead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 22 Appointment of trustees—replacement of last continuing trustee with impaired capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 23 Appointment of trustees—replacement of last continuing trustee who is insolvent under administration . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 24 Appointment of trustees—additional trustees . . . . . . . . . . . . . . . 34 25 Appointment of trustees—separate trustees of separate trust property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 26 Powers etc. of trustees appointed under division . . . . . . . . . . . . 35 Division 3 Discharge and removal of trustees 27 When minimum trustee requirements are satisfied . . . . . . . . . . . 36 28 Discharge of trustee on appointment of new trustee . . . . . . . . . . 36 29 Removal and discharge of trustee without appointment of new trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 30 Discharge of trustee who wishes to be discharged . . . . . . . . . . . 37 Division 4 Notification of former delegate if trustee is replaced, removed or discharged 31 Particular persons to notify person who was trustee’s delegate . 38 Division 5 Vesting of trust property on appointment, removal or discharge of trustees 32 Application of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 33 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 34 Vesting of trust property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 35 Transfer etc. of trust property . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Division 6 Devolution of trusts on death of trustee 36 Exercise of trust powers etc. by surviving trustees . . . . . . . . . . . 42 Division 7 Vesting of trust property and devolution of trusts—death of last continuing trustee 37 Application of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 38 Vesting of trust property in public trustee . . . . . . . . . . . . . . . . . . 42 39 Powers etc. of public trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 40 Vesting of trust property in new trustee . . . . . . . . . . . . . . . . . . . . 43 41 Vesting of trust property in holder of grant . . . . . . . . . . . . . . . . . 44 42 Powers etc. of holder of grant . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 43 Liability of public trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Contents Trusts Bill 2025 Page 3 Authorised by the Parliamentary Counsel Division 8 Disclaimer of trusts of wills and related matters 44 Disclaimer of trust of will on renunciation of probate or failure to apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 45 When grantee under letters of administration is taken to be trustee of will . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Part 4 Custodian trustees 46 Meaning of managing trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 47 Appointment of custodian trustee . . . . . . . . . . . . . . . . . . . . . . . . 46 48 Vesting of trust property in custodian trustee . . . . . . . . . . . . . . . 47 49 Trust powers, authorities and discretions of managing trustees not affected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 50 Function of custodian trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 51 Protection from liability for custodian trustee . . . . . . . . . . . . . . . . 49 52 Liability of managing trustees for acts and omissions of custodian trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 53 Application by custodian trustee for directions . . . . . . . . . . . . . . 49 54 Proceedings to be in name of custodian trustee . . . . . . . . . . . . . 50 55 Persons dealing with custodian trustee . . . . . . . . . . . . . . . . . . . . 50 56 Ending custodian trusteeship . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 57 Right to indemnity not affected . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Part 5 Trustees’ duties Division 1 Preliminary 58 Application of part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 59 Definitions for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Division 2 General duty to exercise care, diligence and skill in administering trusts 60 Duty of professional trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 61 Duty of particular non-professional trustees . . . . . . . . . . . . . . . . 52 62 Duty of other trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Division 3 Duty to act honestly and in good faith 63 Duty to act honestly and in good faith . . . . . . . . . . . . . . . . . . . . . 53 Division 4 Duties relating to accounts and other records 64 Duty to keep accounts and other records . . . . . . . . . . . . . . . . . . 53 65 Duty to make accounts available for inspection and to provide copies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Part 6 Investments

Contents Trusts Bill 2025 Page 4 Authorised by the Parliamentary Counsel Division 1 Preliminary 66 Definitions for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Division 2 Duty of particular trustees to exercise care, diligence and skill in exercising investment powers 67 Duty of trustees who are professional investors . . . . . . . . . . . . . 55 68 Duty of particular trustees who are not professional investors . . 55 Division 3 Duties and powers in relation to investments 69 Power to invest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 70 Law and equity preserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 71 Matters to which trustee must have regard in exercising investment power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 72 Advice for particular investment purposes . . . . . . . . . . . . . . . . . 58 73 Duty to review investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 74 Investment in securities under RITS system . . . . . . . . . . . . . . . . 59 75 Power to provide residence for beneficiary to live in . . . . . . . . . . 59 76 Power to authorise another person to exercise trustee’s investment powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Division 4 Liability of trustees in relation to exercise of investment powers 77 Liability of trustee for acts and omissions of person authorised to exercise trustee’s investment powers . . . . . . . . . . . . . . . . . . . . . 61 78 Particular loans by trustee not in breach of trust . . . . . . . . . . . . . 62 79 Limitation of liability of trustee for loss on improper investment . 62 80 Court may take into account investment strategy etc. in proceeding for breach of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 81 Court may set off gains and losses . . . . . . . . . . . . . . . . . . . . . . . 64 Part 7 General powers of trustees Division 1 Powers in relation to trust property 82 General powers in relation to trust property . . . . . . . . . . . . . . . . 64 83 Power to postpone sale, calling in and conversion of particular trust property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 84 Power to execute instruments etc. . . . . . . . . . . . . . . . . . . . . . . . 66 Division 2 Expenditure in relation to trust property 85 Power to expend amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 86 Power to apportion expenditure between income and capital and recoup particular expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Division 3 Appropriation 87 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 88 Notice of proposed appropriation . . . . . . . . . . . . . . . . . . . . . . . . 68

Contents Trusts Bill 2025 Page 5 Authorised by the Parliamentary Counsel 89 Interested person may apply to vary proposed appropriation or waive right to apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 90 Appropriation to satisfy legacy or share generally . . . . . . . . . . . . 69 91 Exercise of power for particular interested persons and entitled persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 92 Appropriation to pay annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 93 Notice to relevant registrar if land or water allocation to be distributed after appropriation to pay annuity . . . . . . . . . . . . . . . . . . . . . . . . 73 Division 4 Delegation Subdivision 1 Preliminary 94 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Subdivision 2 Delegation by trustees 95 Power to delegate matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 96 Period during which delegation is in effect . . . . . . . . . . . . . . . . . 74 97 Effect of delegation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 98 Liability of trustee for acts and omissions of delegate . . . . . . . . . 76 99 Trustee to notify particular persons of delegation . . . . . . . . . . . . 76 Subdivision 3 Revocation of delegation 100 Revocation by trustee—instrument of revocation . . . . . . . . . . . . 77 101 Revocation by trustee—impaired capacity for administering trust 77 102 Revocation by delegate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Subdivision 4 Protections for third parties 103 Definition for subdivision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 104 Validity of particular acts of delegate in favour of third party . . . . 78 105 Effect of statutory declaration by delegate . . . . . . . . . . . . . . . . . 79 106 Persons dealing with delegate in good faith not affected by notice of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Division 5 Appointment of agents 107 Appointment of agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 108 Payment of agent and reimbursement of trustee . . . . . . . . . . . . 80 Division 6 Application of income by trustee-mortgagee in possession 109 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 110 Application of income—priority outgoings accruing after trustee becomes mortgagee in possession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 111 Payment to primary beneficiary on recovery of all or part of mortgage debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 112 Application of income—priority outgoings accruing before trustee

Contents Trusts Bill 2025 Page 6 Authorised by the Parliamentary Counsel becomes mortgagee in possession . . . . . . . . . . . . . . . . . . . . . . . 82 Division 7 Delivery of chattels 113 Delivery of chattels to beneficiary with life interest or other limited interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 114 Delivery of chattels to child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Division 8 Other provisions 115 Application of insurance money . . . . . . . . . . . . . . . . . . . . . . . . . 84 116 Deposit of documents for safe custody . . . . . . . . . . . . . . . . . . . . 85 117 Valuations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 118 Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 119 Trustee may sue and be sued by themself in another capacity . 87 120 Inquiries about beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 121 Exercise of trustee powers when particular beneficiaries are absolutely entitled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 122 Effect of conversion of land or personal property under statutory power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Part 8 Maintenance, education and advancement Division 1 Preliminary 123 Definition for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Division 2 Application of trust income 124 Child beneficiaries—application of trust income for maintenance etc. 89 125 Child beneficiaries—investment and application of unexpended trust income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 126 Adult beneficiaries—application of trust income for maintenance etc. 92 127 Vested annuities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Division 3 Application of trust capital 128 Application of trust capital for beneficiary’s maintenance etc. . . . 93 129 Restriction on application of trust capital . . . . . . . . . . . . . . . . . . . 94 130 Prescribed amount for application of trust capital . . . . . . . . . . . . 94 131 Trust capital paid or applied to be brought into account . . . . . . . 95 Division 4 Imposition of conditions 132 Trustee may impose conditions . . . . . . . . . . . . . . . . . . . . . . . . . . 96 133 Amounts repaid or recovered taken not to have been paid or applied 97 134 Trustee not liable for losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Part 9 Indemnities and protection of trustees and other persons Division 1 Distributing trust property

Contents Trusts Bill 2025 Page 7 Authorised by the Parliamentary Counsel 135 Giving notice of intention to distribute . . . . . . . . . . . . . . . . . . . . . 98 136 Protection of trustee distributing after closing day . . . . . . . . . . . . 99 Division 2 Claims against trust property and trustees 137 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 138 Trustee may require claimant or potential claimant to start proceeding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 139 Trustee may apply to court for orders in relation to claim . . . . . . 101 140 Court may make orders in relation to claim . . . . . . . . . . . . . . . . . 101 141 Contesting trustee’s right to indemnity . . . . . . . . . . . . . . . . . . . . 102 Division 3 Remedies for wrongful distribution of trust property 142 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 143 Enforcement of remedies for wrongful distribution . . . . . . . . . . . 103 144 Effect of change of position of recipient . . . . . . . . . . . . . . . . . . . 103 145 Other defences available to recipient not limited . . . . . . . . . . . . . 104 Division 4 Particular protections for trustees 146 Protection relating to notice when person is trustee of more than 1 trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 147 Protection in relation to receipts . . . . . . . . . . . . . . . . . . . . . . . . . 104 148 Protection in relation to acts and omissions of other persons and losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 149 Expenses reasonably incurred in administering trust . . . . . . . . . 105 150 Protection against liability for rents etc. under lease . . . . . . . . . . 105 Division 5 General 151 Evidence about vacancy in trust or removal of trustee . . . . . . . . 107 152 Protection for persons registering dealings with trust property . . 107 153 Protection for purchasers and mortgagees . . . . . . . . . . . . . . . . . 108 154 Receipts given by trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 155 Power of court to relieve trustee from personal liability . . . . . . . . 108 156 Power of court to make beneficiary indemnify for breach of trust 109 157 Indemnity for acts done under court order . . . . . . . . . . . . . . . . . 109 Part 10 Remuneration of trustees 158 Definitions for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 159 Remuneration of professional trustees . . . . . . . . . . . . . . . . . . . . 110 160 Remuneration of trustees under court order . . . . . . . . . . . . . . . . 110 161 Court may reduce excessive amounts for commission and professional charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

Contents Trusts Bill 2025 Page 8 Authorised by the Parliamentary Counsel Part 11 Court powers Division 1 Preliminary 162 Definition for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Division 2 Applications for orders 163 Persons who may apply for particular orders relating to trusts and trust property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 164 Persons who may apply for orders relating to interests in mortgaged property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 165 Persons who may apply for orders relating to other property . . . 113 Division 3 Appointment and removal of trustees and other office holders and related matters 166 Power to appoint and remove trustees . . . . . . . . . . . . . . . . . . . . 113 167 Powers etc. of trustees appointed by court . . . . . . . . . . . . . . . . . 114 168 Power to disqualify persons from appointment as trustees and remove them as trustees of other trusts . . . . . . . . . . . . . . . . . . . . . . . . . . 114 169 Power to appoint and remove particular office holders . . . . . . . . 115 Division 4 Vesting orders and related matters 170 Application of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 171 Court may make vesting and other orders etc. . . . . . . . . . . . . . . 118 172 Restrictions on vesting orders in particular circumstances . . . . . 119 173 Effect of vesting and other orders . . . . . . . . . . . . . . . . . . . . . . . . 120 174 Transfer of property under vesting order . . . . . . . . . . . . . . . . . . . 120 175 Powers etc. of person named in vesting order as trustee . . . . . . 121 176 Circumstances relating to validity of vesting and other orders etc. 121 Division 5 Orders in relation to property and claims of children 177 Court may make orders in relation to property or claim of child . 122 Division 6 Conferral of additional management powers 178 Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 179 Court may confer additional management powers . . . . . . . . . . . 124 180 Court may revoke or vary order . . . . . . . . . . . . . . . . . . . . . . . . . . 125 181 Persons who may apply for order . . . . . . . . . . . . . . . . . . . . . . . . 125 Division 7 Variations of trusts 182 Meaning of protective trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 183 Power of court to authorise variations of trust . . . . . . . . . . . . . . . 126 Division 8 Applications for directions 184 Court may give directions about particular matters . . . . . . . . . . . 128 185 Protection of trustee acting under court directions . . . . . . . . . . . 128

Contents Trusts Bill 2025 Page 9 Authorised by the Parliamentary Counsel Division 9 Reviews of decisions and directions for apprehended decisions 186 Definitions for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 187 Application for review or directions . . . . . . . . . . . . . . . . . . . . . . . 129 188 Grounds for review or directions . . . . . . . . . . . . . . . . . . . . . . . . . 130 189 Orders and directions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Division 10 Other matters 190 Court may decide proceeding in absence of trustee . . . . . . . . . . 131 191 Court may appoint representative or make orders in absence of party or interested person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 192 Court may charge costs on property . . . . . . . . . . . . . . . . . . . . . . 132 193 Payment of particular trust property into court by trustees . . . . . 132 Part 12 Charitable trusts Division 1 Trusts containing non-charitable and invalid purposes 194 Inclusion of non-charitable and invalid purpose not to invalidate trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Division 2 Applications to court in relation to charitable trusts 195 Who may apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 196 Notice of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 197 Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Division 3 Schemes to allow trust property to be applied cy pres Subdivision 1 Preliminary 198 References to purposes of charitable trust . . . . . . . . . . . . . . . . . 135 199 Circumstances in which purposes of charitable trust may be changed under sdiv 2 or 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 200 Relationship with Charitable Funds Act 1958 . . . . . . . . . . . . . . . 137 Subdivision 2 Approval of schemes by court 201 Court may approve scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 Subdivision 3 Approval of schemes by Attorney-General 202 Trustee may apply to Attorney-General to approve scheme . . . . 138 203 Requirements for public notice etc. . . . . . . . . . . . . . . . . . . . . . . . 138 204 Powers of Attorney-General . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 205 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 206 Public notice of Attorney-General’s decision . . . . . . . . . . . . . . . . 140 207 Effect of decision to approve scheme . . . . . . . . . . . . . . . . . . . . . 141 208 Appeal against decision to approve scheme . . . . . . . . . . . . . . . . 141 209 Application for court approval not prevented by decision to refuse to approve scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

Contents Trusts Bill 2025 Page 10 Authorised by the Parliamentary Counsel 210 Register of approvals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Subdivision 4 Duty of trustees to make cy pres applications 211 Duty of trustee in relation to application of property cy pres . . . . 142 Part 13 Gifts by particular trustees to charity-like government entities or other entities 212 Definitions for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 213 Prescribed trust—trust instrument containing express power to give to eligible recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 214 Prescribed trust—trust instrument not containing express power to give to eligible recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 215 Application of Act to prescribed trust . . . . . . . . . . . . . . . . . . . . . . 145 Part 14 Statutory trustees 216 Restriction on exercise of particular powers by statutory trustees 146 217 Rights, duties and protections of statutory trustees . . . . . . . . . . 146 Part 15 Miscellaneous 218 Regulation-making power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 219 Approved forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Part 16 Repeal 220 Repeal of Trusts Act 1973 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Part 17 Transitional and validation provisions Division 1 Preliminary 221 Definition for part . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 222 Application of Acts Interpretation Act 1954 . . . . . . . . . . . . . . . . . 148 Division 2 Restrictions on appointment of trustees 223 Existing trustees not affected by particular restrictions on appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 224 Existing trusts with more than 4 trustees . . . . . . . . . . . . . . . . . . . 148 225 Existing certificates of Minister approving of more than 4 trustees 149 Division 3 Provisions for appointment, discharge and removal of trustees and devolution of trusts 226 Appointment of trustees—replacement of trustee in particular circumstances happening or starting before commencement . . . 149 227 Appointment of trustees—replacement of last continuing trustee who is dead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 228 Appointment of trustees—replacement of last continuing trustee with impaired capacity or who is insolvent under administration . . . . 150 229 Appointment of trustees—additional trustees . . . . . . . . . . . . . . . 150 230 Vesting of trust property in existing trustees . . . . . . . . . . . . . . . . 150

Contents Trusts Bill 2025 Page 11 Authorised by the Parliamentary Counsel 231 Powers etc. of existing trustees appointed under repealed Act, s 12 151 232 Removal and discharge of trustees in particular circumstances happening or starting before commencement . . . . . . . . . . . . . . . 151 233 Application of requirement to notify former delegate of trustee’s replacement, removal or discharge . . . . . . . . . . . . . . . . . . . . . . . 152 234 Vesting and divesting of particular trust property if trustees appointed or discharged before commencement . . . . . . . . . . . . . . . . . . . . . . . 152 235 Exercise of trust powers etc. by surviving trustees . . . . . . . . . . . 152 236 Vesting of trust property and devolution of trusts—death of last continuing trustee before commencement . . . . . . . . . . . . . . . . . 152 237 Vesting of trust property and devolution of trusts—death of last continuing trustee after commencement . . . . . . . . . . . . . . . . . . . 153 238 Mortgage estates vested in public trustee before commencement 154 239 When grantee under letters of administration taken to be trustee of will . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Division 4 Provisions for custodian trustees 240 Application of pt 4 to existing trusts . . . . . . . . . . . . . . . . . . . . . . . 154 241 Application of Act to existing custodian trustees . . . . . . . . . . . . . 154 Division 5 Provisions for investments 242 Investment advice obtained before commencement . . . . . . . . . . 155 243 First review of existing trust investments . . . . . . . . . . . . . . . . . . . 155 244 Dwelling house purchased etc. as residence before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 245 Liability for particular loans made by trustee before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 246 Proceedings against trustees for breach of trust in relation to exercise of investment power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 247 Set off of gains and losses in proceedings for breach of trust . . . 157 248 Particular references in documents to authorised investments etc. 158 Division 6 Provisions for general powers of trustees 249 Application of general powers in relation to existing trust property 159 250 Power to apportion particular expenditure and payments made before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 251 Existing notices of appropriation . . . . . . . . . . . . . . . . . . . . . . . . . 160 252 Appropriation before commencement to pay annuity or periodic payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 253 Distribution of land after notice given to registrar or other person before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

Contents Trusts Bill 2025 Page 12 Authorised by the Parliamentary Counsel 254 Conveyance of property sold before commencement on terms of deferred payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 255 Delegation of matter by power of attorney in operation before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 256 Existing appointments of agents . . . . . . . . . . . . . . . . . . . . . . . . . 162 257 Application of income by trustee-mortgagee in possession . . . . 162 258 Application of insurance money . . . . . . . . . . . . . . . . . . . . . . . . . 163 259 Payment for deposit of documents for safe custody before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 260 Valuations if required consultation undertaken before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 261 Audit conducted before commencement . . . . . . . . . . . . . . . . . . . 164 262 Costs etc. of inquiries about beneficiaries . . . . . . . . . . . . . . . . . . 164 263 Effect of conversion of land or personal property before commencement under statutory power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 264 Businesses carried on before commencement . . . . . . . . . . . . . . 165 Division 7 Provisions for maintenance, education and advancement 265 Accumulations of surplus trust income held before commencement 165 266 Application of trust capital, and bringing particular amounts into account, if capital paid or applied before commencement . . . . . . . . . . . . . 165 267 Requirement for chief executive to publish prescribed amount for financial year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 268 Conditions imposed before commencement on advances for maintenance etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 269 Existing protective trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Division 8 Provisions for indemnities and protection of trustees and other persons 270 Protection against liability for rents and covenants if accrued liabilities satisfied before commencement . . . . . . . . . . . . . . . . . . . . . . . . . 167 271 Existing notices of intended distribution of trust property or estate 167 272 Existing notices calling on claimants and potential claimants to take legal proceedings etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 273 Existing proceedings for orders in relation to proceedings not taken or prosecuted in compliance with notice served before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 274 Remedies for wrongful distribution of trust property . . . . . . . . . . 169 275 Effect of order made before commencement refusing leave to enforce remedy for wrongful distribution of trust property in particular way 169 276 Expenses reasonably incurred before commencement in administering

Contents Trusts Bill 2025 Page 13 Authorised by the Parliamentary Counsel trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 277 Statement in existing instrument about vacancy in trust or removal of trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 278 Power of court to relieve trustee from personal liability for breach of trust committed before commencement . . . . . . . . . . . . . . . . . . . . . . . 170 279 Power of court to make beneficiary indemnify for breach of trust committed before commencement . . . . . . . . . . . . . . . . . . . . . . . 171 280 Indemnity for acts done under particular court orders . . . . . . . . . 171 Division 9 Provisions for remuneration of trustees 281 Existing proceedings for remuneration of trustees . . . . . . . . . . . 171 282 Proceedings for remuneration of trustees for whom charges have been paid out under repealed Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 283 Application of s 161 to amounts charged, or proposed to be charged, for commission or professional charges . . . . . . . . . . . . . . . . . . . . . . 172 Division 10 Provisions for court powers 284 Existing proceedings under particular provisions of repealed Act 172 285 Powers etc. of trustees appointed by court under repealed Act, s 80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 286 Power to disqualify particular persons from appointment as trustees and remove them as trustees of other trusts . . . . . . . . . . . . . . . . . . . 173 287 Circumstances relating to validity of vesting and other orders made under repealed Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 288 Agreements entered into for infants by court-appointed persons 173 289 Orders authorising dealings etc. in relation to particular property to which infants are beneficially entitled . . . . . . . . . . . . . . . . . . . . . . . . . . 174 290 Vesting orders made under repealed Act . . . . . . . . . . . . . . . . . . 174 291 Powers of persons in whose favour vesting order as trustee made under repealed Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 292 Conveyance or release by person appointed by court under repealed Act, s 92 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 293 Revocation or variation of orders made under repealed Act, s 94 176 294 Directions made under repealed Act, s 96 . . . . . . . . . . . . . . . . . 176 295 Application of provisions about proceedings in absence of particular persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 296 Application of provisions for orders about costs . . . . . . . . . . . . . 177 297 Payment into court—orders made before commencement . . . . . 177 298 Payment into court—money or securities paid before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 Division 11 Provision for charitable trusts

Contents Trusts Bill 2025 Page 14 Authorised by the Parliamentary Counsel 299 Existing proceedings in relation to charitable trusts . . . . . . . . . . 177 Division 12 Provision for gifts by particular trustees to charity-like government entities or other entities 300 Application of pt 13 to funds and trusts established before commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 Division 13 Provisions for particular philanthropic gifts Subdivision 1 Preliminary 301 Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 Subdivision 2 Validation of exercise, or purported exercise, of particular powers 302 Validation provision for exercise, or purported exercise, of particular powers during relevant period . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Subdivision 3 Application of Act to particular prescribed trusts 303 Definitions for subdivision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 304 Meaning of former prescribed power . . . . . . . . . . . . . . . . . . . . . . 180 305 Application of Act to particular prescribed trusts . . . . . . . . . . . . . 181 306 Application of s 305 in relation to particular powers exercised, or purportedly exercised, before commencement . . . . . . . . . . . . . . 182 Division 14 Provision for particular statutory trustees under repealed Act 307 Continued application of repealed Act to statutory trustees of settled land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Division 15 Other matters 308 Requirements for particular transfers to local governments to end 183 309 References to repealed Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 310 Transitional regulation-making power . . . . . . . . . . . . . . . . . . . . . 184 Part 18 Amendment of Acts Division 1 Amendment of this Act 311 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 312 Amendment of long title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Division 2 Amendment of Aboriginal Land Act 1991 313 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 314 Amendment of pt 21, div 2, hdg (Powers of Supreme Court) . . . 185 315 Insertion of new s 268A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 268A Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . 185 316 Amendment of s 269 (Jurisdiction of Supreme Court) . . . . . . . . 186 317 Amendment of sch 1 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . 186 Division 3 Amendment of Corrective Services Act 2006 318 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186

Contents Trusts Bill 2025 Page 15 Authorised by the Parliamentary Counsel 319 Amendment of s 311 (Prisoners trust fund) . . . . . . . . . . . . . . . . . 186 320 Amendment of s 315 (Investment of prisoners trust fund) . . . . . 186 321 Insertion of new s 319KA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187 319KA Relationship with Trusts Act 2025 . . . . . . . . . . . . . . . 187 Division 4 Amendment of District Court of Queensland Act 1967 322 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187 323 Amendment of s 68 (Civil jurisdiction) . . . . . . . . . . . . . . . . . . . . . 187 Division 5 Amendment of Funeral Benefit Business Act 1982 324 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188 325 Amendment of s 79 (Application of Trusts Act 1973) . . . . . . . . . 188 326 Replacement of pt 9, hdg (Transitional provisions for Liquor and Gaming (Red Tape Reduction) and Other Legislation Amendment Act 2013) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188 327 Amendment of s 90 (Definitions for pt 9) . . . . . . . . . . . . . . . . . . . 189 328 Insertion of new pt 9, div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 Division 2 Transitional provisions for Trusts Act 2025 97 Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . 189 98 Application of Trusts Act 2025 to particular payments made before commencement . . . . . . . . . . . . . . . . . . . . . . . 189 99 Continued application of repealed Trusts Act 1973 in particular circumstances . . . . . . . . . . . . . . . . . . . . . . 190 Division 6 Amendment of Public Trustee Act 1978 329 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 330 Replacement of s 40 (When public trustee being custodian trustee or statutory trustee may act as general trustee) . . . . . . . . . . . . . . . 191 40 When public trustee as custodian trustee may act as managing trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 40A When public trustee as statutory trustee may act as trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 331 Insertion of new pt 10, div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Division 4 Transitional provisions for Trusts Act 2025 150 When public trustee as custodian trustee may act as managing trustee—existing appointment . . . . . . . . . 193 151 Application of former s 40(3) to particular statutory trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Division 7 Amendment of River Improvement Trust Act 1940 332 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 333 Insertion of new s 5BA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

Contents Trusts Bill 2025 Page 16 Authorised by the Parliamentary Counsel 5BA Relationship with Trusts Act 2025 . . . . . . . . . . . . . . . 194 334 Replacement of pt 9, hdg (Transitional provision for Water Legislation Amendment Act 2016) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 335 Insertion of new pt 9, div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 Division 2 Validation provision for Trusts Act 2025 25 Relationship with repealed Trusts Act 1973 . . . . . . . 194 Division 8 Amendment of Succession Act 1981 336 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 337 Insertion of new ss 49B–49D . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 49B Power to carry on business . . . . . . . . . . . . . . . . . . . . 195 49C Power to subscribe to particular funds if carrying on business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 49D Court may approve period for carrying on business . 198 338 Insertion of new s 53A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 53A Protection of personal representatives for calls made after transfer of shares . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 339 Insertion of new s 61AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 61AA Abolition of rule in Allhusen v Whittell . . . . . . . . . . . . 199 Division 9 Amendment of Torres Strait Islander Land Act 1991 340 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 341 Amendment of pt 15, div 2, hdg (Powers of Supreme Court) . . . 201 342 Insertion of new s 173A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 173A Definition for division . . . . . . . . . . . . . . . . . . . . . . . . . 201 343 Amendment of s 174 (Jurisdiction of Supreme Court) . . . . . . . . 202 344 Amendment of sch 1 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . 202 Part 19 Other amendments 345 Legislation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Schedule 1 Dictionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Schedule 2 Other amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 Aboriginal Land Act 1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 Building Industry Fairness (Security of Payment) Act 2017 . . . . 210 Charitable Funds Act 1958 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Funeral Benefit Business Act 1982 . . . . . . . . . . . . . . . . . . . . . . . 211 Guardianship and Administration Act 2000 . . . . . . . . . . . . . . . . . 212 Land Act 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212

Contents Trusts Bill 2025 Page 17 Authorised by the Parliamentary Counsel Land Valuation Act 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 Legal Aid Queensland Act 1997 . . . . . . . . . . . . . . . . . . . . . . . . . 213 Limitation of Actions Act 1974 . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Nature Conservation Act 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Powers of Attorney Act 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 Property Law Act 1974 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 Property Law Act 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 Public Trustee Act 1978 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Retirement Villages Act 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 Succession Act 1981 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 Torres Strait Islander Land Act 1991 . . . . . . . . . . . . . . . . . . . . . . 216 Trustee Companies Act 1968 . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 United Grand Lodge of Antient Free and Accepted Masons of Queensland Trustees Act 1942 . . . . . . . . . . . . . . . . . . . . . . . . . . 218

2025 A Bill for An Act to provide for the law relating to trusts, to repeal the Trusts Act 1973, and to amend this Act, the Aboriginal Land Act 1991, the Corrective Services Act 2006, the District Court of Queensland Act 1967, the Funeral Benefit Business Act 1982, the Public Trustee Act 1978, the River Improvement Trust Act 1940, the Succession Act 1981, the Torres Strait Islander Land Act 1991 and the legislation mentioned in schedule 2 for particular purposes

Page 20 Authorised by the Parliamentary Counsel [s 1] Trusts Bill 2025 Part 1 Preliminary The Parliament of Queensland enacts— Part 1 Preliminary Division 1 Introduction 1 Short title This Act may be cited as the Trusts Act 2025. 2 Commencement This Act commences on a day to be fixed by proclamation. 3 Application of Act (1) This Act applies in relation to a trust whether created before or after, or partly before and partly after, the commencement of this Act, except to the extent this Act or another Act provides otherwise. Note— For an example of an Act providing otherwise, see the Land Act 1994, section 90. (2) Also, this Act applies despite a contrary intention in any trust instrument, except to the extent this Act provides otherwise. (3) This Act does not prevent a settlor conferring on a trustee any powers additional to or greater than those conferred under this Act. (4) Any additional or greater power conferred on a trustee by a settlor has effect and is exercisable in the same way, and with the same consequences, as a power conferred under this Act. (5) Subsection (4) applies subject to an express contrary intention in the trust instrument. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Page 21 Authorised by the Parliamentary Counsel [s 4] Trusts Bill 2025 Part 1 Preliminary (6) The powers conferred on a trustee under this Act are in addition to the powers conferred on the trustee under any other Act. (7) In this section— trustee includes a person exercising the powers of a trustee under this Act. 4 Act binds all persons This Act binds all persons, including the State and, to the extent the legislative power of the Parliament permits, the Commonwealth and the other States. Division 2 Interpretation 5 Definitions The dictionary in schedule 1 defines particular words used in this Act. 6 Meaning of trust Trust includes— (a) an implied, resulting, bare or constructive trust; and (b) the duties incidental to the office of a personal representative. 7 Meaning of trustee and statutory trustee (1) Trustee includes— (a) a trustee corporation; and (b) another corporation in which property subject to a trust is vested; and (c) a personal representative; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Page 22 Authorised by the Parliamentary Counsel [s 8] Trusts Bill 2025 Part 1 Preliminary (d) a statutory trustee. (2) A person, other than a person under a legal incapacity, is a statutory trustee in relation to trust property comprising land if— (a) the person is beneficially entitled to possession of the land, or to the rents and profits of the land; and (b) apart from this section, there is no trustee of the land. Note— See part 14 in relation to statutory trustees. 8 Meaning of trust instrument (1) The trust instrument, in relation to a trust, is any instrument creating the trust, as modified by all validly executed amendments. (2) In this section— instrument includes an Act. 9 Meaning of trust property and references to trust property (1) Trust property includes— (a) property settled on any trust; and (b) property subject to any implied, resulting, bare or constructive trust; and (c) property subject to any trust or direction for sale, however arising; and (d) land vested in a person for an estate for the person’s own life or any other life, or for a term of years determinable on life not being a mere lease at rent, or for any greater estate not being a fee simple absolute; and (e) land in relation to which a person has, under a will, a personal licence to reside for the person’s own life or any other life, or for any lesser period; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 23 Authorised by the Parliamentary Counsel [s 10] Trusts Bill 2025 Part 1 Preliminary (f) the estate of a deceased person. (2) A reference in this Act to trust property includes a reference to a part of the trust property. 10 Meaning of capacity and impaired capacity (1) A person has capacity for a matter only if the person is capable of— (a) understanding the nature and effect of decisions about the matter; and (b) freely and voluntarily making decisions about the matter; and (c) communicating the decisions in some way. (2) A person has impaired capacity for a matter if the person does not have capacity for the matter. Example of a matter for this section— administering a trust 11 Meaning of charitable (1) The established rules of law relating to what is charitable, as in force immediately before the commencement, continue to apply. Examples of categories of charitable purposes— • the relief of poverty • the advancement of education • the advancement of religion (2) Despite any rule of law to the contrary, it is declared that it is and always has been charitable to provide, or to help in providing, facilities for recreation or other leisure time activity, if the facilities are provided in the interests of social welfare. (3) For subsection (2), facilities are provided in the interests of social welfare only if— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 24 Authorised by the Parliamentary Counsel [s 12] Trusts Bill 2025 Part 2 Restrictions on appointment of trustees and related matters (a) the facilities are provided with the object of improving the conditions of life for the persons for whom the facilities are primarily intended; and (b) either— (i) those persons have need of the facilities because of their youth, age, infirmity or disability, poverty or social and economic circumstances; or (ii) the facilities are to be available to the members of the public at large or to a substantial section of the public at large. (4) Nothing in this section limits the requirement that, in order to be charitable, a gift, trust or institution must be for the public benefit. 12 References to security when lending or investing trust funds In this Act, a reference to a trustee lending or investing trust funds on the security of property includes a reference to a trustee lending or investing trust funds on a new security or on the transfer of an existing security. Part 2 Restrictions on appointment of trustees and related matters 13 Persons who can not be appointed as trustees (1) The following persons can not be appointed as a trustee— (a) a child; (b) an individual who is an insolvent under administration; (c) a corporation that is a Chapter 5 body corporate; (d) a person who is disqualified from being appointed as a trustee by an order made under section 168. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Page 25 Authorised by the Parliamentary Counsel [s 14] Trusts Bill 2025 Part 2 Restrictions on appointment of trustees and related matters (2) The purported appointment of a person mentioned in subsection (1)(a), (b), (c) or (d) is of no effect. (3) Subsections (1)(b) and (c) and (2) do not affect the appointment of— (a) an individual who becomes an insolvent under administration after the individual’s appointment as trustee has taken effect; or (b) a corporation that becomes a Chapter 5 body corporate after the corporation’s appointment as trustee has taken effect. Note— See, however— (a) sections 20, 23 and 29 in relation to the replacement and removal of a trustee who becomes an insolvent under administration; and (b) sections 20 and 29 in relation to the replacement and removal of a trustee that becomes a Chapter 5 body corporate. (4) This section does not apply in relation to the appointment of a personal representative. (5) Also, to remove any doubt, it is declared that this section does not limit the court’s power to declare that a person mentioned in subsection (1)(a), (b), (c) or (d) holds property as a trustee. 14 Limit on number of trustees of particular trusts (1) This section applies to a trust other than— (a) a charitable trust; or (b) a trust that is, or is created for the purpose of becoming, a self managed superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 (Cwlth). (2) The trust may not have more than 4 trustees. (3) If more than 4 persons are named as trustees under the trust instrument— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Page 26 Authorised by the Parliamentary Counsel [s 15] Trusts Bill 2025 Part 2 Restrictions on appointment of trustees and related matters (a) the first 4 persons named, who are able and willing to act as trustees and whose appointments are otherwise able to take effect, are the trustees; and Example of a person who is not able to act as a trustee— a person who has impaired capacity for administering the trust Example of a person whose appointment as a trustee is not otherwise able to take effect— a person who can not, under section 13, be appointed as a trustee (b) the appointment of the other persons is of no effect. (4) A custodian trustee is not to be counted for the purpose of any limitation on the number of trustees the trust may have. Note— See part 4 in relation to custodian trustees. (5) This section applies subject to section 15. 15 Court approval of more than 4 trustees for particular trusts (1) This section applies in relation to a trust other than a trust mentioned in section 14(1)(a) or (b). (2) The court may, on application, make an order approving the appointment of more than 4 trustees of the trust if satisfied it is appropriate to do so in the particular circumstances of the case. Note— See section 163 in relation to the persons who may apply to the court for particular orders. (3) The number of trustees approved by an order made under subsection (2) is the approved number. Example— If the court approves the appointment of 6 trustees, the approved number is 6. (4) If the court makes an order under subsection (2) in relation to a trust, section 14 applies to the trust as if— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Page 27 Authorised by the Parliamentary Counsel [s 16] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (a) the reference in section 14(2) to 4 trustees were a reference to the approved number of trustees; and (b) a reference in section 14(3) to 4 persons were a reference to the approved number of persons. 16 Local government trustees may act in administration of trusts (1) If a local government is appointed as trustee of a trust, the local government may act in the administration of the trust for the purpose of, and according to, the trust, even if the purpose is not a function of local government. (2) Subsection (1) applies whether or not the local government is an original trustee of the trust. (3) However, if the local government is not an original trustee of the trust, subsection (1) applies subject to a contrary intention in the trust instrument. Part 3 Appointment, discharge and removal of trustees and devolution of trusts Division 1 Preliminary 17 Application of part This part applies in relation to a trustee who is the personal representative of the estate of a deceased person only if, and to the extent, the personal representative— (a) has completed the administration of all, or a part, of the estate; and (b) holds the estate, or a part of the estate, in the capacity of trustee only. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Page 28 Authorised by the Parliamentary Counsel [s 18] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts 18 When appointors are not able and willing to act (1) For this part, if there is 1 appointor for a trust, the appointor is not able and willing to act as appointor for the trust if— (a) the appointor does not exercise the power of appointment within a reasonable period; or (b) the appointor is otherwise not able and willing to act as appointor. (2) For this part, if there are 2 or more appointors for a trust, the appointors are not able and willing to act as appointors for the trust if— (a) the appointors can not, within a reasonable period— (i) if the trust instrument provides for the appointors to exercise the power of appointment by majority—reach a majority decision on the appointment; or (ii) otherwise—reach a unanimous decision on the appointment; or (b) the appointors are otherwise not able and willing to act as appointors. Division 2 Appointment of trustees 19 Application of division (1) If there is an appointor for a trust, the provisions of this division relating to appointors apply, whether the appointment of a trustee is to be made in a circumstance mentioned in this division or in the trust instrument. (2) However, if an appointor is authorised under this division to appoint a trustee in a circumstance that is also mentioned in the trust instrument, an appointment made under this division in that circumstance is subject to the terms applying under the trust instrument to an appointment in that circumstance. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 29 Authorised by the Parliamentary Counsel [s 20] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (3) If a will names a person as trustee of a trust created by the will and the person is dead, the provisions of this division that apply if a trustee is dead apply— (a) whether the person is named as a sole trustee or otherwise of the trust; and (b) whether the death of the person happened before or after the death of the testator. 20 Appointment of trustees—replacement of trustee in particular circumstances (1) This section applies if a trustee of a trust (a relevant trustee)— (a) is dead; or (b) declares, by instrument, that the trustee wishes to be discharged from all or part of the trusts reposed in the trustee; or (c) refuses to act as trustee; or (d) is unfit to act as trustee; or (e) is incapable of acting as trustee, including, for example, because of having impaired capacity for administering the trust; or (f) becomes an insolvent under administration; or (g) is disqualified from managing corporations under the Corporations Act, part 2D.6 and either— (i) does not have permission under section 206GAB or 206G of that Act to manage all corporations; or (ii) has permission under section 206GAB or 206G of that Act to manage all corporations, but the permission is subject to exceptions or conditions; or (h) is a corporation that— (i) stops carrying on business; or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Page 30 Authorised by the Parliamentary Counsel [s 21] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (ii) becomes a Chapter 5 body corporate; or (iii) is deregistered or otherwise ceases to exist; or (i) is removed under the trust instrument. (2) For subsection (1), it does not matter whether the relevant trustee is an original trustee of the trust or was appointed by the court or otherwise. (3) The following persons may, by instrument, appoint 1 or more persons as trustees to replace the relevant trustee— (a) if there is an appointor for the trust—the appointor; (b) if there is no appointor for the trust, or no appointor who is able and willing to act as an appointor—the continuing trustee of the trust or, if there is more than 1 continuing trustee, the continuing trustees. Notes— 1 See section 14 in relation to the limit applying to the number of trustees of particular trusts. 2 See also section 166 in relation to the court’s power to appoint and remove trustees. (4) Subject to a contrary intention in the trust instrument, an appointor for the trust may appoint themself as a trustee under subsection (3)(a). (5) In this section— continuing trustee includes a relevant trustee mentioned in subsection (1)(b) or (c) who is willing to act under subsection (3)(b). 21 Appointment of trustees—replacement of last continuing trustee who is dead (1) This section applies if all of the following apply— (a) the last continuing trustee of a trust is dead; (b) there is no appointor for the trust, or no appointor who is able and willing to act under section 20 to appoint a trustee to replace the last continuing trustee; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Page 31 Authorised by the Parliamentary Counsel [s 21] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (c) if the trust instrument includes a mechanism, other than the appointment of an appointor, for appointing a trustee to replace the last continuing trustee—an appointment of a trustee under the mechanism has not taken effect within a reasonable period after the death of the last continuing trustee. (2) For subsection (1), it does not matter whether the last continuing trustee was an original trustee of the trust or was appointed by the court or otherwise. (3) The personal representative of the last continuing trustee may, by instrument, appoint 1 or more persons as trustees to replace the last continuing trustee. Notes— 1 See section 14 in relation to the limit applying to the number of trustees of particular trusts. 2 See also section 166 in relation to the court’s power to appoint and remove trustees. (4) The personal representative of the last continuing trustee— (a) is taken to have always had the power of appointment conferred under subsection (3); and (b) if the personal representative is the executor, whether original or by representation, of the last continuing trustee’s will—may exercise the power of appointment conferred under subsection (3) without the agreement of any executor named in the trustee’s will who has not proved the trustee’s will. (5) Subject to a contrary intention in the trust instrument, the personal representative of the last continuing trustee may appoint themself as a trustee under subsection (3). (6) If there is more than 1 personal representative of the last continuing trustee, the personal representatives must exercise the power of appointment under subsection (3) jointly. (7) In this section— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Page 32 Authorised by the Parliamentary Counsel [s 22] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts personal representative, of the last continuing trustee of a trust, does not include an executor named in the trustee’s will who has not proved the trustee’s will. 22 Appointment of trustees—replacement of last continuing trustee with impaired capacity (1) This section applies if all of the following apply— (a) the last continuing trustee of a trust is incapable of acting as trustee because the trustee has impaired capacity for administering the trust; (b) there is no appointor for the trust, or no appointor who is able and willing to act under section 20 to appoint a trustee to replace the last continuing trustee; (c) if the trust instrument includes a mechanism, other than the appointment of an appointor, for appointing a trustee to replace the last continuing trustee—an appointment of a trustee under the mechanism has not taken effect within a reasonable period after the later of the following to happen to the last continuing trustee— (i) becoming the last continuing trustee; (ii) becoming a person with impaired capacity for administering the trust; (d) an administrator or attorney for the last continuing trustee is authorised, under their appointment as administrator or attorney, to exercise power for all financial matters for the trustee. (2) For subsection (1), it does not matter whether the last continuing trustee is an original trustee of the trust or was appointed by the court or otherwise. (3) The administrator or attorney may, by instrument, appoint 1 or more persons as trustees to replace the last continuing trustee. Notes— 1 See section 14 in relation to the limit applying to the number of trustees of particular trusts. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Page 33 Authorised by the Parliamentary Counsel [s 23] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts 2 See also section 166 in relation to the court’s power to appoint and remove trustees. (4) The administrator or attorney may appoint themself as a trustee under subsection (3). (5) If there is more than 1 administrator or more than 1 attorney for the last continuing trustee, the administrators or attorneys must exercise the power of appointment under subsection (3) jointly. (6) To remove any doubt, it is declared that— (a) the exercise of the power of appointment under subsection (3) is not made in the capacity of administrator or attorney for the last continuing trustee; and (b) neither the Guardianship and Administration Act 2000 nor the Powers of Attorney Act 1998 applies in relation to the exercise of the power of appointment. (7) This section applies subject to a contrary intention in— (a) the trust instrument; or (b) the order or instrument by which the administrator or attorney is appointed. 23 Appointment of trustees—replacement of last continuing trustee who is insolvent under administration (1) This section applies if all of the following apply— (a) the last continuing trustee of a trust is an insolvent under administration; (b) there is no appointor for the trust, or no appointor who is able and willing to act under section 20 to appoint a trustee to replace the last continuing trustee; (c) if the trust instrument includes a mechanism, other than the appointment of an appointor, for appointing a trustee to replace the last continuing trustee—an appointment of a trustee under the mechanism has not taken effect 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Page 34 Authorised by the Parliamentary Counsel [s 24] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts within a reasonable period after the later of the following to happen to the last continuing trustee— (i) becoming the last continuing trustee; (ii) becoming an insolvent under administration. (2) For subsection (1), it does not matter whether the last continuing trustee is an original trustee of the trust or was appointed by the court or otherwise. (3) Subject to a contrary intention in the trust instrument, the last continuing trustee may, by instrument, appoint 1 or more persons as trustees to replace themself. Notes— 1 See section 14 in relation to the limit applying to the number of trustees of particular trusts. 2 See also section 166 in relation to the court’s power to appoint and remove trustees. (4) The power conferred under subsection (3) is a personal right only of the last continuing trustee. 24 Appointment of trustees—additional trustees (1) This section applies in relation to a trust if— (a) the number of trustees of the trust is less than the number of trustees permitted for the trust under section 14, including that section as applied by section 15(4); or (b) section 14 does not apply to the trust. (2) The following persons may, by instrument, appoint 1 or more persons as additional trustees of the trust— (a) if there is an appointor for the trust—the appointor; (b) if there is no appointor for the trust, or no appointor who is able and willing to act as an appointor—the trustee of the trust or, if there is more than 1 trustee, the trustees. Notes— 1 See section 14 in relation to the limit applying to the number of trustees of particular trusts. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Page 35 Authorised by the Parliamentary Counsel [s 25] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts 2 See also section 166 in relation to the court’s power to appoint additional trustees. (3) However, the persons mentioned in subsection (2) are not required to exercise the power conferred under that subsection unless the appointment of 1 or more additional trustees is required under the trust instrument or an Act. (4) Subject to a contrary intention in the trust instrument, an appointor for the trust may appoint themself as an additional trustee under subsection (2)(a). 25 Appointment of trustees—separate trustees of separate trust property (1) This section applies if, under a trust, a part of the trust property (the separate trust property) is held on a trust distinct from the trust relating to any other part of the trust property. (2) If a new trustee may be appointed under this division— (a) 1 or more separate trustees may be appointed of the separate trust property, whether or not a new trustee is, or is to be, appointed of any other part of the trust property; and (b) a continuing trustee may be appointed or continue as a trustee of the separate trust property; and (c) if only 1 trustee of the trust property was originally appointed—1 trustee may be appointed of the separate trust property. 26 Powers etc. of trustees appointed under division (1) A person appointed under this division as a trustee of trust property has all the powers, authorities and discretions of, and may in all matters act as, a person who had originally been appointed as a trustee of the trust property under the trust instrument. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Page 36 Authorised by the Parliamentary Counsel [s 27] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (2) Subsection (1) applies in relation to the trustee both before and after the trust property is vested in the trustee. Division 3 Discharge and removal of trustees 27 When minimum trustee requirements are satisfied For this division, the minimum trustee requirements for a trust are satisfied if the trust has— (a) at least 1 trustee that is a corporation; or Examples of a corporation— • the public trustee • a licensed trustee company • a company registered under the Corporations Act • a local government Note— See section 16 in relation to the power of a local government to act in the administration of a trust. (b) at least 2 trustees who are individuals; or (c) if only 1 trustee was originally appointed or the trust instrument allows the trust to have only 1 trustee who is an individual—1 trustee who is an individual. 28 Discharge of trustee on appointment of new trustee (1) This section applies if— (a) a new trustee is appointed under division 2 to replace a trustee (the replaced trustee); and (b) on the appointment of the new trustee, the minimum trustee requirements for the trust are satisfied. (2) On the appointment of the new trustee, the replaced trustee is discharged from the trust. (3) However, if the replaced trustee has declared, as mentioned in section 20(1)(b), that the trustee wishes to be discharged from 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 37 Authorised by the Parliamentary Counsel [s 29] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts only part of the trusts reposed in the trustee and is replaced under section 20 in relation to that part only, the trustee is discharged from that part only. 29 Removal and discharge of trustee without appointment of new trustee (1) This section applies in relation to a relevant trustee mentioned in section 20(1)(c), (d), (e), (f), (g) or (h). (2) For subsection (1), it does not matter whether the relevant trustee is an original trustee of the trust or was appointed by the court or otherwise. (3) The following persons may, by instrument, remove the relevant trustee without appointing a new trustee to replace the relevant trustee— (a) if there is an appointor for the trust—the appointor; (b) if there is no appointor for the trust, or no appointor who is able and willing to act as an appointor—the continuing trustee of the trust or, if there is more than 1 continuing trustee, the continuing trustees. (4) However, subsection (3) applies only if, on the removal of the relevant trustee, the minimum trustee requirements for the trust will be satisfied. (5) On the removal of the relevant trustee under this section, the relevant trustee is discharged from the trust. 30 Discharge of trustee who wishes to be discharged (1) This section applies if— (a) a trustee declares, by instrument, that the trustee wishes to be discharged from all, or part (the relevant part), of the trusts reposed in the trustee; and (b) on the discharge, the minimum trustee requirements will be satisfied for the trust or relevant part; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 38 Authorised by the Parliamentary Counsel [s 31] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (c) the trustee’s co-trustees and, if there is an appointor for the trust, the appointor, by instrument, agree to— (i) discharge the trustee from the trusts or relevant part; and (ii) vest the trust property in the co-trustees alone. (2) Subject to subsection (3), the trustee is discharged from the trusts or relevant part. (3) The discharge of the trustee takes effect— (a) to the extent it is necessary, in order to vest the trust property in the co-trustees alone, for a transfer of the trust property to be notified, registered or recorded under the requirements of another Act or of a law of another State or the Commonwealth—on the notification, registration or recording of the transfer; or (b) if, or to the extent, paragraph (a) does not apply—according to the terms of the instrument mentioned in subsection (1)(c). (4) If the trustee has declared, as mentioned in subsection (1)(a), that the trustee wishes to be discharged from only the relevant part of the trusts, this section applies as if a reference in subsections (1)(c)(ii) and (3)(a) to the trust property were a reference to the trust property held on trust under the relevant part. (5) To remove any doubt, it is declared that it is not necessary for a new trustee to be appointed to replace the trustee who is discharged. Division 4 Notification of former delegate if trustee is replaced, removed or discharged 31 Particular persons to notify person who was trustee’s delegate (1) This section applies if— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Page 39 Authorised by the Parliamentary Counsel [s 32] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (a) a trustee is— (i) replaced under division 2; or (ii) removed under section 29 or under the trust instrument, without being replaced; or (iii) discharged under section 30; and (b) when the trustee is replaced, removed or discharged, the relevant person has notice that the trustee had, under section 95, delegated a matter in relation to the trust. (2) For subsection (1)(b), it does not matter whether the relevant person has notice of the delegation of the matter because the trustee gave notice to the relevant person under section 99, or otherwise. (3) The relevant person must give the person to whom the delegation was made written notice that the trustee has been replaced, removed or discharged, as the case may be. (4) In this section— relevant person means— (a) in relation to a trustee who is replaced or removed as mentioned in subsection (1)(a)(i) or (ii)—the person replacing or removing the trustee; or (b) in relation to a trustee who is discharged as mentioned in subsection (1)(a)(iii)—any person whose agreement to the discharge is required under section 30. Division 5 Vesting of trust property on appointment, removal or discharge of trustees 32 Application of division (1) This division applies if, by instrument (an instrument of change)— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 40 Authorised by the Parliamentary Counsel [s 33] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (a) a new trustee is appointed, whether under division 2 or under the trust instrument and whether to replace a trustee or to be an additional trustee; or (b) a trustee is— (i) removed under section 29; or (ii) discharged under section 30. (2) However, this division does not apply in relation to a new trustee if the new trustee is appointed to replace the last continuing trustee of a trust who is dead. Note— See division 7 in relation to the vesting of trust property on the death of the last continuing trustee of a trust. 33 Definitions for division In this division— instrument of change see section 32(1). post-change trustee, in relation to an instrument of change, means a person who, on the appointment of a new trustee, or the removal or discharge of a trustee, under the instrument, becomes or continues as a trustee of the trust to which the instrument relates. pre-change trustee, in relation to an instrument of change, means a person who, immediately before the appointment of a new trustee, or the removal or discharge of a trustee, takes effect under the instrument, is a trustee of the trust to which the instrument relates. 34 Vesting of trust property (1) On the appointment of the new trustee, or the removal or discharge of the trustee, under the instrument of change, the instrument of change— (a) divests the trust property from the pre-change trustees; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Page 41 Authorised by the Parliamentary Counsel [s 35] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (b) without any conveyance, transfer or assignment, vests the trust property in— (i) the post-change trustee; or (ii) if there is more than 1 post-change trustee—the post-change trustees, as joint tenants. (2) However, to the extent the divesting and vesting of the trust property have effect only if notified, registered or recorded under the requirements of another Act or of a law of another State or the Commonwealth— (a) the divesting and vesting of the trust property are subject to the requirements of the other Act or law; and (b) the instrument of change— (i) vests in the post-change trustee a right to call for a transfer of the trust property; or (ii) if there is more than 1 post-change trustee—vests in the post-change trustees jointly a right to call for a transfer of the trust property. 35 Transfer etc. of trust property (1) Each pre-change trustee and post-change trustee must do all things necessary to assist in the notification, registration or recording of the divesting and vesting of the trust property under a requirement mentioned in section 34(2). (2) The instrument of change is taken to be a conveyance of the trust property from the pre-change trustees to— (a) the post-change trustee; or (b) if there is more than 1 post-change trustee—the post-change trustees, as joint tenants. (3) However, the instrument of change does not have effect as a breach of covenant or condition, or give rise to the forfeiture, of any lease or agreement for lease or other property. (4) If the consent of a person is needed to the conveyance, transfer or assignment of the trust property— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Page 42 Authorised by the Parliamentary Counsel [s 36] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (a) the vesting of the property under this division is subject to the consent; but (b) the consent may be obtained after the execution of the instrument of change by the post-change trustee or, if there is more than 1 post-change trustee, the post-change trustees. Division 6 Devolution of trusts on death of trustee 36 Exercise of trust powers etc. by surviving trustees (1) This section applies if— (a) a power is given to, or a trust is imposed on, 2 or more trustees jointly; and (b) 1 or more of the trustees dies. (2) The surviving trustee or, if there is more than 1 surviving trustee, the surviving trustees may exercise the power or perform the trust, as the case may be. Division 7 Vesting of trust property and devolution of trusts—death of last continuing trustee 37 Application of division This division applies if the last continuing trustee of a trust dies. 38 Vesting of trust property in public trustee (1) On the death of the last continuing trustee, the trust property devolves to and vests in the public trustee in the same way, and subject to the same provisions, as trust property vests in a post-change trustee under division 5. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Page 43 Authorised by the Parliamentary Counsel [s 39] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (2) However, it is not necessary for the public trustee to notify, register or record the vesting of the trust property under section 35, as applied by subsection (1), if— (a) the public trustee does not act in relation to the trust; or (b) the only action taken by the public trustee is the appointment of a new trustee. (3) The trust property remains vested in the public trustee until it is divested from the public trustee under section 40 or 41. 39 Powers etc. of public trustee (1) While the trust property is vested in the public trustee under section 38, the public trustee has all the powers, authorities and discretions of, and may in all matters act as, a person who had originally been appointed as a trustee of the trust property under the trust instrument. (2) However, unless the court, in special circumstances, otherwise directs, the public trustee is not required to exercise any of the powers, authorities or discretions or act in the administration of the trust. (3) This section does not limit any power of the public trustee under the Public Trustee Act 1978, section 61 or 62. 40 Vesting of trust property in new trustee (1) This section applies if— (a) a new trustee is appointed to replace the last continuing trustee; and (b) for an appointment made other than by the public trustee—the new trustee gives the public trustee written notice of the appointment. (2) The trust property— (a) is divested from the public trustee; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 44 Authorised by the Parliamentary Counsel [s 41] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts (b) devolves to and vests in the new trustee in the same way, and subject to the same provisions, as trust property vests in a post-change trustee under division 5. 41 Vesting of trust property in holder of grant (1) This section applies if— (a) a new trustee has not been appointed to replace the last continuing trustee; and (b) a grant of probate of the will, or letters of administration of the estate, of the last continuing trustee is made to a person, other than the public trustee; and (c) the holder of the grant gives the public trustee written notice of— (i) the making of the grant; and (ii) the holder’s intention to assume the trust of the trust property. (2) The trust property— (a) is divested from the public trustee; and (b) devolves to and vests in the holder of the grant in the same way, and subject to the same provisions, as trust property vests in a post-change trustee under division 5. 42 Powers etc. of holder of grant If the trust property vests in the holder of a grant under section 41, the holder— (a) is taken to be a person appointed as a new trustee by an appointor for the trust; and (b) has all the powers, authorities and discretions of, and may in all matters act as, a person who had originally been appointed as a trustee of the trust property under the trust instrument. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 45 Authorised by the Parliamentary Counsel [s 43] Trusts Bill 2025 Part 3 Appointment, discharge and removal of trustees and devolution of trusts 43 Liability of public trustee (1) This section applies if, before the trust property is divested from the public trustee under section 40 or 41, the public trustee— (a) is liable for any action taken by the public trustee in relation to the trust; and (b) is entitled to be indemnified out of the trust property for the liability. (2) On the divesting of the trust property from the public trustee under section 40 or 41— (a) the public trustee’s liability ends; and (b) a person who would, apart from paragraph (a), have had a remedy against the public trustee is taken to have the same remedy against the person in whom the trust property vests under section 40 or 41. Division 8 Disclaimer of trusts of wills and related matters 44 Disclaimer of trust of will on renunciation of probate or failure to apply (1) This section applies if— (a) a person is appointed as both executor and trustee of a will; and (b) the person— (i) renounces probate of the will; or (ii) fails to apply for probate of the will after being properly cited or summoned to apply. (2) The person’s renunciation or failure is taken to be a disclaimer by the person of the trust of the will. (3) To remove any doubt, it is declared that subsection (2) does not affect any express trust established under the will. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 46 Authorised by the Parliamentary Counsel [s 45] Trusts Bill 2025 Part 4 Custodian trustees 45 When grantee under letters of administration is taken to be trustee of will (1) This section applies if— (a) a person is appointed as both executor and trustee of a will; and (b) the person— (i) renounces probate of the will; or (ii) fails to apply for probate of the will after being properly cited or summoned to apply; or (iii) dies before probate of the will is granted to the person; and (c) letters of administration with the will are granted to another person (the grantee). (2) The grantee is taken to have been appointed trustee of the will instead of the person. Part 4 Custodian trustees 46 Meaning of managing trustee If a custodian trustee of trust property is appointed, each trustee of the trust, other than the custodian trustee, is a managing trustee of the trust. 47 Appointment of custodian trustee (1) A corporation may be appointed, in a way provided under subsection (2), as the custodian trustee of trust property. (2) The appointment may be made by— (a) the trust instrument; or (b) if there is an appointor for the trust—the appointor, by instrument; or (c) the trustees of the trust, by instrument; or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Page 47 Authorised by the Parliamentary Counsel [s 48] Trusts Bill 2025 Part 4 Custodian trustees (d) the court, by order. (3) Subsection (2)(b) and (c) applies subject to a contrary intention in the trust instrument. 48 Vesting of trust property in custodian trustee (1) On the appointment of a custodian trustee of trust property, the trust property vests in the custodian trustee as if the custodian trustee were the sole trustee. (2) The instrument of appointment of a custodian trustee— (a) is taken to be a conveyance of the trust property from the managing trustees to the custodian trustee; but (b) does not have effect as a breach of covenant or condition, or give rise to the forfeiture, of any lease or agreement for lease or other property. (3) Section 34(2) applies to the divesting and vesting of the trust property under this section as if— (a) the reference in section 34(2)(b) to the instrument of change were a reference to the instrument of appointment of the custodian trustee; and (b) the reference in section 34(2)(b)(i) to the post-change trustee were a reference to the custodian trustee. (4) The court may, on application, make vesting orders to give effect to subsection (1). Note— See section 163 in relation to the persons who may apply to the court for particular orders. (5) Subsection (1) applies subject to an express contrary intention in the trust instrument. (6) In this section— instrument of appointment, of a custodian trustee, means the trust instrument, other instrument or court order by which the custodian trustee is appointed. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Page 48 Authorised by the Parliamentary Counsel [s 49] Trusts Bill 2025 Part 4 Custodian trustees 49 Trust powers, authorities and discretions of managing trustees not affected (1) This section applies if trust property vests in a custodian trustee under section 48. (2) The exercise of all powers, authorities and discretions exercisable by trustees under the trust, including the management of the trust property, remains vested in the managing trustees of the trust as fully and effectively as if there were no custodian trustee. (3) Without limiting subsection (2), the custodian trustee does not have the power to appoint a new trustee of the trust. Note— See, however, section 163(3) in relation to a custodian trustee’s power to apply to the court for an order appointing a new trustee of the trust. (4) This section applies subject to an express contrary intention in the trust instrument. 50 Function of custodian trustee (1) A custodian trustee’s function is to do the following, as the managing trustees, by instrument, direct— (a) get in and hold the trust property; (b) invest the trust property; (c) dispose of the trust property. (2) For performing the custodian trustee’s function under subsection (1), the custodian trustee must perform all acts and execute all documents as the managing trustees, by instrument, direct. (3) This section applies subject to an express contrary intention in the trust instrument. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Page 49 Authorised by the Parliamentary Counsel [s 51] Trusts Bill 2025 Part 4 Custodian trustees 51 Protection from liability for custodian trustee (1) A custodian trustee is not personally liable for an act done, or an omission made, under a direction of the managing trustees mentioned in section 50(1) or (2). (2) Also, a custodian trustee is not personally liable for an act done, or an omission made, by any of the managing trustees. (3) This section applies subject to an express contrary intention in the trust instrument. 52 Liability of managing trustees for acts and omissions of custodian trustee (1) This section applies if a custodian trustee does an act, or makes an omission, under a direction of the managing trustees mentioned in section 50(1) or (2). (2) The managing trustees are liable for the act done, or the omission made, as if it were the managing trustees’ own act or omission. (3) This section applies subject to an express contrary intention in the trust instrument. 53 Application by custodian trustee for directions (1) A custodian trustee may apply to the court for directions if the custodian trustee believes a direction of the managing trustees mentioned in section 50(1) or (2)— (a) conflicts with the trust instrument or the law; or (b) exposes, or would expose, the custodian trustee to a personal liability; or (c) is otherwise objectionable. (2) The court may, on an application under subsection (1), make the orders and give the directions the court considers appropriate, including an order about the costs of the application. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 50 Authorised by the Parliamentary Counsel [s 54] Trusts Bill 2025 Part 4 Custodian trustees (3) An order made under subsection (2) giving directions binds the custodian trustee and the managing trustees. 54 Proceedings to be in name of custodian trustee (1) A proceeding in relation to trust property that is vested in a custodian trustee must be brought or defended, in the name of the custodian trustee, as the managing trustees, by instrument, direct. (2) If a custodian trustee brings or defends a proceeding under a direction of the managing trustees mentioned in subsection (1)— (a) the custodian trustee is not personally liable for the costs of bringing or defending the proceeding; but (b) the managing trustees are personally liable for the costs of bringing or defending the proceeding, as if it had been brought or defended by the managing trustees. (3) This section applies subject to an express contrary intention in the trust instrument. 55 Persons dealing with custodian trustee A person dealing with a custodian trustee— (a) is not required to inquire about— (i) any direction of the managing trustees about the dealing; or (ii) whether the managing trustees have agreed to the dealing; and (b) is not affected by notice of the fact the managing trustees have not agreed to the dealing. 56 Ending custodian trusteeship (1) The following persons may apply to the court to end a custodian trusteeship— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 51 Authorised by the Parliamentary Counsel [s 57] Trusts Bill 2025 Part 5 Trustees’ duties (a) the custodian trustee; (b) a managing trustee of the trust; (c) a beneficiary of the trust. (2) The court may order the ending of the custodian trusteeship if satisfied that— (a) it is the general wish of the beneficiaries of the trust; or (b) it is expedient to end the custodian trusteeship on other grounds. (3) The court may, to give effect to the ending of the custodian trusteeship— (a) give the directions it considers appropriate; and (b) make the vesting orders it considers necessary. 57 Right to indemnity not affected Nothing in this part limits the right of the managing trustees of a trust, or of a custodian trustee of trust property, to be indemnified out of the trust property in relation to liabilities incurred in the proper administration of the trust. Part 5 Trustees’ duties Division 1 Preliminary 58 Application of part This part does not limit any other duty to which a trustee is subject, whether under this Act or otherwise. 59 Definitions for part In this part— professional trustee means— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Page 52 Authorised by the Parliamentary Counsel [s 60] Trusts Bill 2025 Part 5 Trustees’ duties (a) a trustee whose profession, business or employment is, or includes, acting as a trustee; or (b) a custodian trustee whose profession, business or employment is, or includes, acting as a custodian trustee. trustee includes a custodian trustee. Division 2 General duty to exercise care, diligence and skill in administering trusts 60 Duty of professional trustees (1) This section applies to a trustee if the trustee is a professional trustee. (2) The trustee has a duty, in administering a trust, to exercise the care, diligence and skill that a prudent person engaged in the trustee’s profession, business or employment would exercise in managing the affairs of other persons. 61 Duty of particular non-professional trustees (1) This section applies to a trustee if— (a) the trustee is not a professional trustee; but (b) the trustee has, or holds themself out as having, special knowledge or experience relevant to administering trusts or trusts of a particular type. (2) The trustee has a duty, in administering a trust or a trust of the particular type, to exercise the care, diligence and skill that a prudent person having that special knowledge or experience would exercise in managing the affairs of other persons. 62 Duty of other trustees (1) This section applies to a trustee if— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Page 53 Authorised by the Parliamentary Counsel [s 63] Trusts Bill 2025 Part 5 Trustees’ duties (a) the trustee is not a professional trustee; and (b) section 61 does not apply to the trustee. (2) The trustee has a duty, in administering a trust, to exercise the care, diligence and skill that a prudent person of business would exercise in managing the affairs of other persons. Division 3 Duty to act honestly and in good faith 63 Duty to act honestly and in good faith A trustee has a duty, in administering a trust, to act honestly and in good faith— (a) if the trust is a charitable trust—to further the purposes of the trust; or (b) otherwise—for the benefit of the beneficiaries of the trust. Division 4 Duties relating to accounts and other records 64 Duty to keep accounts and other records (1) A trustee has a duty, in administering a trust, to— (a) keep accurate accounts and records for the trust; and (b) keep the accounts and records for at least 3 years after the termination of the trust. (2) If a person is the trustee of more than 1 trust, the person must keep separate accounts and records for each trust. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Page 54 Authorised by the Parliamentary Counsel [s 65] Trusts Bill 2025 Part 6 Investments 65 Duty to make accounts available for inspection and to provide copies (1) A trustee has a duty, in administering a trust, to do the following on request by a beneficiary of the trust— (a) to make the accounts for the trust available for inspection by the beneficiary within a reasonable period after the request is made; (b) to provide copies of the accounts for the trust to the beneficiary, within a reasonable period after the request is made, on payment of the reasonable costs of providing the copies. (2) However, subsection (1) does not apply if the request is unreasonable in the circumstances. Example of a request to provide copies of accounts that may be unreasonable in the circumstances— a request by a beneficiary who has been provided with copies of the accounts to be provided with updated copies of the accounts at very short intervals (3) Subsection (1) does not limit any right of a beneficiary— (a) to obtain other information from the trustee; or (b) to apply to the court for an order that the trustee provide other information. (4) In this section— beneficiary, of a trust, includes a person in whose favour a power to distribute the trust property may be exercised. Part 6 Investments Division 1 Preliminary 66 Definitions for part In this part— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 55 Authorised by the Parliamentary Counsel [s 67] Trusts Bill 2025 Part 6 Investments investment power means— (a) a power of investment conferred on a trustee under the trust instrument; or (b) a power conferred on a trustee under this part. professional investor means a person whose profession, business or employment is, or includes, investing money for other persons. Division 2 Duty of particular trustees to exercise care, diligence and skill in exercising investment powers 67 Duty of trustees who are professional investors (1) This section applies to a trustee if the trustee is a professional investor. (2) The trustee has a duty, in exercising an investment power, to exercise the care, diligence and skill that a prudent person engaged in the trustee’s profession, business or employment would exercise in managing the affairs of other persons. (3) This section applies subject to a contrary intention in the trust instrument. Note— See also part 5, division 2 in relation to a trustee’s general duty in administering a trust. 68 Duty of particular trustees who are not professional investors (1) This section applies to a trustee if— (a) the trustee is not a professional investor; but (b) the trustee has, or holds themself out as having, special knowledge or experience in investing money for other persons. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 56 Authorised by the Parliamentary Counsel [s 69] Trusts Bill 2025 Part 6 Investments (2) The trustee has a duty, in exercising an investment power, to exercise the care, diligence and skill that a prudent person having that special knowledge or experience would exercise in managing the affairs of other persons. (3) This section applies subject to a contrary intention in the trust instrument. Note— See also part 5, division 2 in relation to a trustee’s general duty in administering a trust. Division 3 Duties and powers in relation to investments 69 Power to invest (1) A trustee may invest trust funds in any form of investment, other than a forbidden form of investment. (2) Also, a trustee may, at any time— (a) vary an investment of trust funds; or (b) realise an investment of trust funds and reinvest an amount resulting from the realisation in any form of investment, other than a forbidden form of investment. (3) A trustee must, in exercising power under subsection (1) or (2), comply with any provision of the trust instrument that is binding on the trustee and requires the trustee to— (a) obtain a consent or approval in relation to trust investments; or (b) comply with a direction in relation to trust investments. (4) In this section— forbidden form of investment, in relation to trust funds, means a form of investment that is expressly forbidden by the trust instrument. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 57 Authorised by the Parliamentary Counsel [s 70] Trusts Bill 2025 Part 6 Investments Note— See, however, section 75 for a power that can not be forbidden, or otherwise limited, by a trust instrument. 70 Law and equity preserved (1) A rule or principle of law or equity that imposes a duty on a trustee exercising an investment power continues to apply except to the extent it is inconsistent with this Act or another Act or with the trust instrument. (2) Without limiting subsection (1), the rules or principles mentioned in that subsection include a rule or principle imposing any of the following duties— (a) a duty to exercise the powers of a trustee in the best interests of all present and future beneficiaries of the trust; (b) a duty to invest trust funds in investments that are not speculative or hazardous; (c) a duty to act impartially towards beneficiaries and between different classes of beneficiaries; (d) a duty to obtain advice. (3) A rule or principle of law or equity relating to a provision in a trust instrument that purports to exempt, limit the liability of, or indemnify a trustee in relation to a breach of trust continues to apply. (4) If a trustee is under a duty to obtain advice, the reasonable costs of obtaining the advice are payable out of the trust funds. 71 Matters to which trustee must have regard in exercising investment power (1) A trustee must, in exercising an investment power, have regard to the following matters, to the extent they are appropriate to the circumstances of the trust— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Page 58 Authorised by the Parliamentary Counsel [s 72] Trusts Bill 2025 Part 6 Investments (a) the purposes of the trust and the needs and circumstances of the beneficiaries; (b) the desirability of diversifying the trust investments; (c) the nature of, and the risk associated with, the existing trust investments and other trust property; (d) the need to maintain the real value of the capital or income of the trust; (e) the risk of capital or income loss or depreciation; (f) the potential for capital appreciation; (g) the likely income return and the timing of income return; (h) the length of the term of the proposed investment; (i) the probable duration of the trust; (j) the liquidity and marketability of the proposed investment during, and at the end of, the term of the proposed investment; (k) the total value of the trust property; (l) the effect of the proposed investment for the tax liability of the trust; (m) the likelihood of inflation affecting the value of the proposed investment or other trust property; (n) the cost (including commissions, fees, charges and duties payable) of making the proposed investment; (o) the results of a review of the existing trust investments. (2) Subsection (1) does not limit the matters to which a trustee may have regard in exercising an investment power. 72 Advice for particular investment purposes (1) A trustee may obtain independent and impartial advice, from a person the trustee reasonably believes is competent to give the advice, if the advice is reasonably required for— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 59 Authorised by the Parliamentary Counsel [s 73] Trusts Bill 2025 Part 6 Investments (a) the investment of trust funds; or (b) the management of the trust investments. (2) If the trustee obtains advice under subsection (1), the trustee— (a) must consider the advice; and (b) may pay, out of the trust funds, the reasonable costs of obtaining the advice. 73 Duty to review investments A trustee must, at least every 12 months, review the performance, individually and as a whole, of the trust investments. 74 Investment in securities under RITS system (1) A chose in action arising under the RITS system that entitles its holder to a security of a particular description (the underlying security) is, for this Act and a trust instrument, taken to be the same in all respects as the underlying security. (2) The holding or acquisition by a trustee of a chose in action mentioned in subsection (1) is taken to be an investment by the trustee in the underlying security. (3) It does not matter that the right conferred by the chose in action is a right in relation to securities of a particular description and not in relation to particular securities. (4) In this section— RITS system means the Reserve Bank Information and Transfer System operated by the Reserve Bank of Australia, as operating from time to time. 75 Power to provide residence for beneficiary to live in (1) A trustee may do any of the following for a beneficiary of the trust— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 60 Authorised by the Parliamentary Counsel [s 75] Trusts Bill 2025 Part 6 Investments (a) buy or construct a residence for the beneficiary to live in; (b) retain a residence that is part of the trust property for the beneficiary to live in; (c) enter into an agreement or arrangement to secure a right to use a residence for the beneficiary to live in. Example for paragraph (c)— entering into a residence contract under the Retirement Villages Act 1999 (2) Also, a trustee who exercises power under subsection (1) may make the residence available to the beneficiary to live in on the conditions the trustee considers appropriate. (3) However, a trustee may exercise power under subsection (1), or impose conditions under subsection (2), only if the exercise of the power, or the imposition of the conditions, is consistent with the extent of the beneficiary’s interest under the trust. (4) A trustee may retain a residence bought, constructed, retained or otherwise secured for use by a beneficiary under this section after the beneficiary has stopped living in the residence. (5) To remove any doubt, it is declared that subsection (4) does not limit the operation of the Retirement Villages Act 1999 or any other Act. (6) Despite section 69, a trust instrument can not forbid the exercise of, or otherwise limit, a trustee’s power under this section. (7) In this section— residence includes— (a) a building or part of a building designed, or converted or capable of being converted, for use as a residence; and (b) amenities or facilities for use in association with the use of a residence; and (c) an interest in a residence. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Page 61 Authorised by the Parliamentary Counsel [s 76] Trusts Bill 2025 Part 6 Investments 76 Power to authorise another person to exercise trustee’s investment powers (1) A trustee may, by instrument, authorise another person to exercise any of the trustee’s investment powers. (2) The authorisation may be made on the terms the trustee considers appropriate, including terms relating to remuneration. (3) However, the authorisation of the other person does not limit any duty or other requirement applying to the trustee under this part or part 5 in relation to the exercise of the trustee’s investment powers. Note— See also section 77 in relation to the liability of the trustee for the acts done, and the omissions made, by the person in exercising the trustee’s investment powers. (4) This section applies subject to an express contrary intention in the trust instrument. Division 4 Liability of trustees in relation to exercise of investment powers 77 Liability of trustee for acts and omissions of person authorised to exercise trustee’s investment powers (1) This section applies if a trustee authorises another person under section 76 to exercise any of the trustee’s investment powers. (2) The trustee is liable for the acts done, and the omissions made, by the other person in exercising the trustee’s investment powers as if the acts and omissions were the trustee’s own acts and omissions. (3) This section applies subject to an express contrary intention in the trust instrument. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 62 Authorised by the Parliamentary Counsel [s 78] Trusts Bill 2025 Part 6 Investments 78 Particular loans by trustee not in breach of trust (1) This section applies if a trustee lends trust funds on the security of property. (2) The trustee is not in breach of trust only because of the comparison of the amount of the loan with the value of the property when the loan was made if— (a) it appears to the court that— (i) in making the loan, the trustee was acting on an independent valuation of the property; and (ii) the amount of the loan was not more than two-thirds of the value of the property stated in the independent valuation; and (iii) the loan was made in reliance on the independent valuation; or (b) the trustee is insured by a prescribed insurer against all loss that may arise because of the borrower’s default. (3) For this section, a valuation of a property made by a person is an independent valuation of the property if the trustee— (a) instructed and employed the person, independently of any owner of the property, to make the valuation; and (b) reasonably believed the person was competent to make the valuation. (4) In this section— prescribed insurer means an entity, prescribed by regulation, that carries on the business of insurance. 79 Limitation of liability of trustee for loss on improper investment (1) This section applies if— (a) a trustee improperly lends trust funds on the security of property; but 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 63 Authorised by the Parliamentary Counsel [s 80] Trusts Bill 2025 Part 6 Investments (b) the loan would have been a proper investment if a lesser amount had been lent. (2) For the trustee’s liability in relation to the investment— (a) the security is taken to be a proper investment in relation to the lesser amount; and (b) the trustee is liable only for the difference between the actual amount lent and the lesser amount, with interest. 80 Court may take into account investment strategy etc. in proceeding for breach of trust (1) This section applies in relation to a proceeding against a trustee for a breach of trust in relation to the exercise of an investment power. (2) The court may, in considering the question of the trustee’s liability, take the following matters into account— (a) the nature and purpose of the trust; (b) the amount of the trust funds invested in the exercise of the investment power; (c) whether the trustee had regard to the matters mentioned in section 71 to the extent they were appropriate to the circumstances of the trust; (d) whether the trust investments have been made under an investment strategy formulated in accordance with the duty of a trustee under this part; (e) the extent to which the trustee acted on advice that the trustee reasonably believed— (i) was given by a person who was independent and competent to give the advice; and (ii) was impartial. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Page 64 Authorised by the Parliamentary Counsel [s 81] Trusts Bill 2025 Part 7 General powers of trustees 81 Court may set off gains and losses (1) This section applies in relation to a proceeding against a trustee for a breach of trust in relation to an investment if a loss has been, or is expected to be, sustained by the trust. (2) The court may set off all or part of the loss resulting from the investment against all or part of any gain resulting from any other investment, whether or not the other investment is a breach of trust. (3) The power of set-off conferred under subsection (2) is in addition to any other power or entitlement to set off all or part of any loss against any property. Part 7 General powers of trustees Division 1 Powers in relation to trust property 82 General powers in relation to trust property (1) A trustee has, in relation to the trust property, all the powers of an absolute owner of the property. Notes— 1 See, however, part 5 in relation to the duties of a trustee in administering a trust. 2 See also the Succession Act 1981, section 49B in relation to particular limitations on a personal representative’s power to carry on a business. (2) Without limiting subsection (1), the powers conferred on a trustee under subsection (1) include the following powers— (a) the power to sell the trust property; (b) the power to lease the trust property or to renew, extend or vary a lease of the trust property; (c) the power to mortgage the trust property or to renew, extend or vary a mortgage of the trust property; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 65 Authorised by the Parliamentary Counsel [s 83] Trusts Bill 2025 Part 7 General powers of trustees (d) for trust property that is securities of a corporation—the power to deal with the securities; (e) the power to settle a debt or claim in relation to the trust property; (f) the power to insure the trust property against the loss of or damage to the trust property or any risk or liability relating to the trust property. (3) A power conferred under subsection (1), other than a power mentioned in subsection (2)(a) to (f), may be excluded or modified by an express statement to that effect in the trust instrument. Note— See, however, section 216 in relation to the exercise of particular powers under this section by a statutory trustee. 83 Power to postpone sale, calling in and conversion of particular trust property (1) A trustee may postpone the sale, calling in or conversion of trust property that the trustee has a duty to sell. (2) Subject to an express contrary intention in the trust instrument, if the trustee’s duty to sell arises because of a trust or direction for sale, the trustee may postpone the sale of the trust property for an indefinite and unlimited period, whether or not that period is longer than the period during which the trust or direction for sale remains valid. (3) However, this section does not apply if the trust property is of a wasting, speculative or reversionary nature. Notes— 1 See, however, the Succession Act 1981, section 49B in relation to particular limitations on a personal representative’s power to carry on a business. 2 See also section 216 in relation to the exercise of power under this section by a statutory trustee. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Page 66 Authorised by the Parliamentary Counsel [s 84] Trusts Bill 2025 Part 7 General powers of trustees 84 Power to execute instruments etc. A trustee may, in relation to the trust property, do anything, make any omission, and execute any instrument, necessary to carry into effect the powers and authorities given under this Act or the trust instrument. Division 2 Expenditure in relation to trust property 85 Power to expend amounts (1) A trustee may, in relation to the trust property, expend an amount, including an amount from capital, that is subject to the same trusts for 1 or more of the following purposes— (a) to maintain or renovate the trust property, whether or not the work is necessary for the purpose of salvaging the property; (b) to improve or develop the trust property; (c) to pay calls on shares subject to the same trust; (d) to pay outgoings in relation to the trust property; (e) if the trust property is land or a water allocation—to subdivide the land or water allocation and pay related expenses; (f) to provide, construct or maintain any of the following for the trust property if they are likely to be beneficial to the property— (i) roads, footpaths and other works for pedestrian or vehicular use; (ii) utility services and other works. (2) If the trustee is a trustee corporation, the trustee may exercise the power conferred under subsection (1)(c) even if the shares on which the calls are made are shares in the trustee corporation. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Page 67 Authorised by the Parliamentary Counsel [s 86] Trusts Bill 2025 Part 7 General powers of trustees (3) In this section— maintain, in relation to property, includes repair the property and provide for the upkeep of the property. outgoings includes rates, premiums, taxes, assessments and insurance premiums. 86 Power to apportion expenditure between income and capital and recoup particular expenditure (1) A trustee may, in relation to the trust property, apportion expenditure made under section 85 between capital and income or otherwise among the persons entitled to the capital or income in the way the trustee considers equitable. (2) If all or part of the expenditure is made out of capital, the trustee may recoup the expenditure made out of capital from income, if to do so would be equitable in all the circumstances. (3) If all or part of the expenditure is made out of income, the trustee may recoup the expenditure made out of income from capital, if to do so would be equitable in all the circumstances. (4) The exercise of power under this section is subject to— (a) this Act; and (b) any direction of the court; and (c) an express contrary intention in the trust instrument. Division 3 Appropriation 87 Definitions for division In this division— entitled person see section 90(1)(a) and (b). extension application see section 89(4). interested person see section 88(2). 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Page 68 Authorised by the Parliamentary Counsel [s 88] Trusts Bill 2025 Part 7 General powers of trustees variation application see section 89(1)(a). 88 Notice of proposed appropriation (1) This section applies if a trustee proposes to appropriate trust property under section 90. (2) Before making the appropriation, the trustee must give written notice of the proposed appropriation to each person interested in the appropriation (each an interested person). (3) However, if the trustee is an interested person, subsection (2) does not require the trustee to give notice of the proposed appropriation to themself. (4) Subsection (5) applies if an interested person is— (a) an adult with impaired capacity for financial matters relating to the proposed appropriation; or (b) a child. (5) The trustee may comply with subsection (2) in relation to the interested person only by giving notice to— (a) if the interested person is an adult—each administrator or attorney for the interested person who is authorised, under their appointment as administrator or attorney, to exercise power for financial matters relating to the proposed appropriation; or (b) if the interested person is a child—each guardian of the child. 89 Interested person may apply to vary proposed appropriation or waive right to apply (1) An interested person who is given notice under section 88 of a proposed appropriation may— (a) make an application to the court to vary the proposed appropriation (a variation application); or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 69 Authorised by the Parliamentary Counsel [s 90] Trusts Bill 2025 Part 7 General powers of trustees (b) by written notice given to the trustee at any time, waive the interested person’s right to make a variation application. (2) Subject to subsections (3) and (4), a variation application must be started within 2 months after the day the interested person is given notice of the proposed appropriation. (3) The interested person may, by written notice given to the trustee within the period mentioned in subsection (2), shorten the period that would otherwise apply under subsection (2) to the shorter period stated in the notice. (4) The court may, on application (an extension application) made by the interested person at any time, allow a variation application to be started within a longer period. (5) The court may make the orders it considers appropriate in relation to a variation application or an extension application. (6) This section applies subject to section 91. 90 Appropriation to satisfy legacy or share generally (1) A trustee may appropriate any part of the trust property to satisfy all or part of— (a) a legacy, payable out of the trust property, to which a person (an entitled person) is entitled; or (b) a share of the trust property, whether contingent or absolute, to which a person (also an entitled person) is entitled. (2) An appropriation of trust property under this section may be made only if— (a) the appropriation does not adversely affect any specific gift of the trust property; and (b) the entitled person consents to the appropriation; and (c) for an appropriation in relation to which the trustee is an interested person, the appropriation has been approved by— 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Page 70 Authorised by the Parliamentary Counsel [s 90] Trusts Bill 2025 Part 7 General powers of trustees (i) each other interested person; or (ii) the court, on an ex parte application by the trustee or otherwise; and (d) notice of the proposed appropriation has been given under section 88; and (e) the circumstances mentioned in subsection (3)(a), (b) or (c) apply. (3) For subsection (2)(e), the circumstances are— (a) all of the following apply— (i) the relevant application period for each interested person has ended; (ii) no interested person has, within the relevant application period for the person, started a variation application and served the application on the trustee; (iii) if any interested person has, since the end of the relevant application period for the person, started an extension application and served the application on the trustee—the extension application has been dismissed by the court; or (b) if any interested person has started a variation application and served the application on the trustee within the relevant application period for the person or any longer period allowed by the court on an extension application—the variation application has been dismissed by the court; or (c) each interested person has given the trustee notice under section 89(1)(b) waiving the person’s right to make a variation application. (4) For making an appropriation under this section, the trustee may, under section 117, ascertain and fix the value of all or any part of the trust property as at the day the appropriation is made. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Page 71 Authorised by the Parliamentary Counsel [s 91] Trusts Bill 2025 Part 7 General powers of trustees (5) An appropriation made under this section is conclusive and binding on all persons who are, or may be, interested in the trust property, unless varied by the court on a variation application. (6) This section does not limit or otherwise affect any power of appropriation conferred under the trust instrument. (7) This section applies subject to section 91. (8) In this section— relevant application period, for an interested person, means the following period within which a variation application by the interested person must be started— (a) if paragraph (b) does not apply—the period mentioned in section 89(2); (b) if the interested person has given the trustee notice under section 89(3)—the shorter period stated in the notice. 91 Exercise of power for particular interested persons and entitled persons (1) If an interested person is a child, only the guardian of the child may— (a) give notice under section 89(1)(b) waiving the interested person’s right to make a variation application; or (b) give notice under section 89(3) shortening the period that would otherwise apply under section 89(2); or (c) approve an appropriation of trust property, as mentioned in section 90(2)(c)(i). (2) If an entitled person is a child, only the guardian of the child may give consent for the child to the making of an appropriation of trust property, as mentioned in section 90(2)(b). (3) If there is more than 1 guardian of a child, the guardians must act jointly in exercising power for the child for a matter mentioned in subsection (1) or (2). 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Page 72 Authorised by the Parliamentary Counsel [s 92] Trusts Bill 2025 Part 7 General powers of trustees (4) Sections 89 and 90 do not limit or otherwise affect— (a) the operation of a provision of another Act that provides for how, or by whom, an application to the court may be made on behalf of a person under a legal incapacity; or (b) the powers of an administrator or attorney for a person with impaired capacity for a matter. 92 Appropriation to pay annuity (1) This section applies if a trust instrument provides for the payment of an annuity, whether or not the trust instrument provides that the annuity may be charged on the trust property. (2) The trustee may set aside and appropriate out of any trust property available for payment of the annuity an amount (the appropriated amount) that, in the trustee’s opinion at the time of appropriation, is enough, when invested, to provide out of the income of the investment the amount required to pay the annuity. (3) After the appropriation has been made— (a) the annuitant has the same right of recourse to the capital and income of the appropriated amount as the annuitant would have had against the trust property if no appropriation had been made; and (b) the trustee may distribute the residue of the trust property and the income of the trust property in accordance with the trust instrument. (4) On the distribution of the residue of the trust property and the income of the trust property under subsection (3)(b), the residue and the income cease to be liable for the annuity. (5) In this section— annuity includes any periodic payment. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Page 73 Authorised by the Parliamentary Counsel [s 93] Trusts Bill 2025 Part 7 General powers of trustees 93 Notice to relevant registrar if land or water allocation to be distributed after appropriation to pay annuity (1) This section applies if a trustee proposes to distribute, under section 92(3)(b), trust property that is land or a water allocation. (2) The trustee must give the relevant registrar written notice that the trust property may be distributed because of an appropriation made under section 92(2) for payment of an annuity. (3) The relevant registrar is not required to inquire into whether the appropriated amount set aside under section 92(2) is enough to provide for payment of the annuity. Division 4 Delegation Subdivision 1 Preliminary 94 Definitions for division In this division— delegate see section 95(4)(b). instrument of delegation see section 95(2). stated circumstances, in relation to the delegation of a matter, see section 95(4)(a). Subdivision 2 Delegation by trustees 95 Power to delegate matters (1) This section applies if a trustee— (a) is absent, or is about to be absent, from the State; or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Page 74 Authorised by the Parliamentary Counsel [s 96] Trusts Bill 2025 Part 7 General powers of trustees (b) is, or may be about to become, because of physical infirmity, temporarily incapable of performing the duties of a trustee. (2) The trustee may, by instrument (an instrument of delegation), delegate the administration or exercise of all or any trusts, powers, authorities and discretions vested in the trustee as trustee to— (a) an individual who resides in the State, if— (i) for an individual who is a co-trustee of the trustee—the individual is not the trustee’s only co-trustee; or (ii) for another individual—section 13(1) would not prevent the individual from being appointed as a trustee; or (b) a trustee corporation that carries on business in the State, if section 13(1) would not prevent the trustee corporation from being appointed as a trustee. (3) For subsection (2), it does not matter whether the trusts, powers, authorities and discretions are vested in the trustee alone or jointly with 1 or more other persons. (4) The instrument of delegation must— (a) state the circumstances in which the delegation is to operate (the stated circumstances); and (b) be signed by the trustee and the person to whom the matters are delegated (the delegate). (5) This section applies despite any rule or principle of law or equity to the contrary. 96 Period during which delegation is in effect (1) The delegation of a matter under section 95 commences— (a) on the happening of an event stated in the instrument of delegation as the time the delegation commences; or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Page 75 Authorised by the Parliamentary Counsel [s 97] Trusts Bill 2025 Part 7 General powers of trustees (b) if the instrument of delegation does not state an event as mentioned in paragraph (a)— (i) on the day stated in the instrument of delegation as the day the delegation commences; or (ii) if no day is stated for that purpose—on the day the instrument of delegation is signed. (2) The delegation of the matter continues in effect until the first of the following happens— (a) the happening of an event stated in the instrument of delegation as the time the delegation ends; (b) the beginning of the day, if any, stated in the instrument of delegation as the day the delegation ends; (c) the beginning of the day that is 12 months after the day the delegation commences; (d) the delegation is revoked under subdivision 3; (e) the trustee is replaced or removed, or is otherwise discharged from the trust, whether under part 3 or otherwise; (f) the trustee dies. 97 Effect of delegation (1) If a trustee delegates a matter under section 95, the delegate has, within the scope of the delegation, the same trusts, powers, authorities, discretions, duties and liabilities in relation to the matter as the delegate would have if the delegate were the trustee, other than the power of delegation conferred under section 95. (2) However, the delegate may perform or exercise the delegated matter only in the stated circumstances. (3) The delegate is subject to the court’s jurisdiction and power in the administration of the trust as if the delegate were the trustee. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Page 76 Authorised by the Parliamentary Counsel [s 98] Trusts Bill 2025 Part 7 General powers of trustees 98 Liability of trustee for acts and omissions of delegate If a trustee delegates a matter under section 95, the trustee is liable for the acts done, and the omissions made, by the delegate in relation to the matter as if they were the trustee’s own acts and omissions. 99 Trustee to notify particular persons of delegation (1) If a trustee delegates a matter under section 95, the trustee must give written notice of the delegation to— (a) if the trustee has any co-trustees—each co-trustee; and (b) if there is an appointor for the trust who is not also the trustee—the appointor. (2) If neither subsection (1)(a) nor (b) applies, the trustee must give written notice of the delegation to each beneficiary of the trust, to the extent it is practicable to do so. (3) Subsection (4) applies if a beneficiary to whom notice must be given under subsection (2) is— (a) an adult with impaired capacity for financial matters relating to the adult’s interest under the trust; or (b) a child. (4) The trustee may comply with subsection (2) in relation to the beneficiary only by giving notice to— (a) if the beneficiary is an adult—each administrator or attorney for the beneficiary who is authorised, under their appointment as administrator or attorney, to exercise power for financial matters relating to the beneficiary’s interest under the trust; or (b) if the beneficiary is a child—each guardian of the child. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27