Section retrieval-0002 - Trusts Bill 2025 - Document excerpt 2 | ZoeQLDIn ForceBill
Trusts Bill 2025
retrieval-0002Document excerpt 2
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
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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
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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
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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