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Part 7 General powers of trustees
(i) who has capacity for financial matters relating to
their interest in the trust property; or
(ii) for whom an administrator or attorney is
authorised, under their appointment as
administrator or attorney, to exercise power for
financial matters relating to the beneficiary’s
interest in the trust property.
(3) However, subsection (2) does not apply to the extent a power
conferred under this part is expressly revoked by all the
beneficiaries, by written notice given to the trustee by—
(a) each beneficiary mentioned in subsection (2)(b)(i); and
(b) the administrator or attorney for each beneficiary
mentioned in subsection (2)(b)(ii).
122 Effect of conversion of land or personal property under
statutory power
(1) This section applies if, as a result of an exercise of power
under this Act—
(a) land is converted into personal property; or
(b) personal property is converted into land.
(2) The personal property or land must be held—
(a) if, before conversion, the personal property or land was
subject to a trust—on a trust corresponding, as nearly as
the law and circumstances permit, with the trust
affecting the personal property or land before
conversion; or
(b) if, before conversion, the personal property or land was
not subject to a trust—subject to the limitations,
conditions, powers or directions corresponding, as
nearly as the law and circumstances permit, with those
affecting the personal property or land before
conversion.
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Trusts Bill 2025
Part 8 Maintenance, education and advancement
Part 8 Maintenance, education and
advancement
Division 1 Preliminary
123 Definition for part
In this part—
relevant capital see section 128(2).
Division 2 Application of trust income
124 Child beneficiaries—application of trust income for
maintenance etc.
(1) This section applies if, under a trust, a trustee holds trust
property for a beneficiary who is a child.
(2) The trustee may pay all or part of the income of the trust
property to the beneficiary’s guardian (if any), or otherwise
apply all or part of the income, for or towards the
beneficiary’s maintenance, education or advancement
(including past maintenance or education).
(3) The power conferred under subsection (2) may be exercised—
(a) whether the beneficiary’s interest in the trust property is
a vested interest or a contingent or future interest or is
absolute or liable to be divested; and
(b) whether or not—
(i) there is another fund that may be applied for the
beneficiary’s maintenance, education or
advancement; or
(ii) there is another person who is bound by law to
provide for the beneficiary’s maintenance or
education.
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Part 8 Maintenance, education and advancement
(4) However, despite subsection (3)(a), if the beneficiary’s
interest in the trust property is a contingent or future interest,
the power conferred under subsection (2) may be exercised
only if the interest includes the intermediate income of the
trust property.
(5) For subsection (4) and without limiting the Succession Act
1981, section 33H, a contingent or future interest in the trust
property is taken, during the beneficiary’s minority and while
the beneficiary’s interest continues, to include the
intermediate income if—
(a) the interest would not, apart from this section, include
the intermediate income; and
(b) the intermediate income is not expressly or specifically
disposed of, but would pass to some other person—
(i) only because of an interest to which the person is
entitled under a residuary or a general disposition
in the trust instrument; or
(ii) in the absence of a disposition mentioned in
subparagraph (i), on intestacy or as a resulting
trust.
125 Child beneficiaries—investment and application of
unexpended trust income
(1) Subsection (2) applies if—
(a) under section 124, a trustee may pay or apply the
income of trust property for or towards a beneficiary’s
maintenance, education or advancement; but
(b) some or all of the income of the trust property (the
remaining income) has not been paid or applied under
section 124 during the beneficiary’s minority and while
the beneficiary’s interest continues.
(2) The trustee must—
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Part 8 Maintenance, education and advancement
(a) invest the remaining income (and the income achieved
by investing the remaining income) in authorised
investments; and
(b) hold the amount of the authorised investments
(including the income of the investments) as provided
under subsection (3) or (4).
(3) The amount is to be held for the beneficiary absolutely if—
(a) the beneficiary becomes an adult and the beneficiary’s
interest in the income during the beneficiary’s minority
was a vested interest; or
(b) the beneficiary, on becoming an adult, is entitled to the
property from which the income arose in fee simple,
absolute or determinable, or absolutely.
(4) If neither subsection (3)(a) nor (b) applies—
(a) the amount is to be held as an accretion to the capital of
the trust property from which the income arose; and
(b) the amount and the capital are to form a single fund for
all purposes.
(5) For subsection (4), it does not matter whether the beneficiary
had a vested interest in the income.
(6) Despite subsection (2)(b), the trustee may, at any time during
the beneficiary’s minority and while the beneficiary’s interest
continues, pay or apply all or part of the amount of the
authorised investments (including the income of the
investments) for or towards the beneficiary’s maintenance,
education or advancement under section 124 as if it were
income arising in the current year.
(7) This section applies subject to a contrary intention in the trust
instrument.
(8) In this section—
authorised investment means an investment of trust funds
that—
(a) is authorised by the trust instrument; or
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Part 8 Maintenance, education and advancement
(b) is made exercising a power of investment conferred
under part 6 or under an order made under section 179;
or
(c) is authorised by another Act or the general law.
126 Adult beneficiaries—application of trust income for
maintenance etc.
(1) This section applies if, under a trust—
(a) a trustee holds trust property for a beneficiary who is an
adult; and
(b) the beneficiary has a contingent interest in the trust
property; and
(c) the beneficiary’s interest includes the intermediate
income of the trust property.
(2) The trustee may pay all or part of the income of the trust
property to the beneficiary, or otherwise apply all or part of
the income, for or towards the beneficiary’s maintenance,
education or advancement (including past maintenance or
education).
127 Vested annuities
(1) Sections 124 to 126 apply in relation to a vested annuity as
if—
(a) the annuity were the income of trust property that is held
by a trustee on trust to pay the income of the trust
property to the annuitant; and
(b) the reference in sections 124(5) and 125(1)(b) and (6) to
the period during the beneficiary’s minority and while
the beneficiary’s interest continues were a reference to
the period for which the annuity is payable.
(2) However, despite section 125(2)(b), the amount of the
authorised investments (including the income of the
investments made during the period for which the annuity is
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Trusts Bill 2025
Part 8 Maintenance, education and advancement
payable) must be held on trust for the annuitant or the
annuitant’s personal representative absolutely.
Division 3 Application of trust capital
128 Application of trust capital for beneficiary’s maintenance
etc.
(1) This section applies if, under a trust, a beneficiary is entitled
to the capital, or any share of the capital, of the trust property.
(2) The capital, or the share of the capital, to which the
beneficiary is entitled is the relevant capital.
(3) Subject to section 129, the trustee may—
(a) pay or apply amounts out of the relevant capital for or
towards the beneficiary’s maintenance, education or
advancement (including past maintenance or education);
or
(b) apply any part of the relevant capital for or towards any
of those purposes.
(4) The amounts of the relevant capital paid or applied and the
value of the parts of the relevant capital applied must not, in
total, be more than the greater of—
(a) the prescribed amount under section 130; or
(b) one-half the relevant capital.
Note—
See, however, section 133 in relation to amounts that are taken not to
have been paid or applied.
(5) However, the court may, on application, authorise the trustee
to—
(a) pay or apply greater amounts out of the relevant capital;
or
(b) apply part of the relevant capital of greater value.
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Trusts Bill 2025
Part 8 Maintenance, education and advancement
(6) The power to pay or apply amounts, or apply part of the
relevant capital, may be exercised—
(a) whether the beneficiary is entitled to the relevant capital
absolutely or contingently on the beneficiary reaching a
stated age or on the happening of another event; or
(b) whether the beneficiary is entitled in possession, in
remainder or in reversion.
(7) Also, it does not matter whether the beneficiary’s entitlement
to the relevant capital—
(a) is liable to be defeated by the exercise of a power of
appointment or revocation; or
(b) is liable to be diminished by an increase of the class to
which the beneficiary belongs.
129 Restriction on application of trust capital
(1) A trustee may not pay or apply an amount out of relevant
capital, or apply a part of relevant capital, under section 128 if
the payment or application would prejudice a person who is
entitled to a prior life interest or other interest, whether vested
or contingent, in the amount or part.
(2) However, the amount or part of the relevant capital may be
paid or applied if—
(a) the person whose interest may be prejudiced—
(i) is an adult who has capacity for financial matters
relating to the payment or application; and
(ii) consents in writing to the payment or application;
or
(b) the court, on application by the trustee, orders the
amount to be paid or applied or the part of the relevant
capital to be applied.
130 Prescribed amount for application of trust capital
(1) For section 128(4)(a), the prescribed amount is—
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Trusts Bill 2025
Part 8 Maintenance, education and advancement
(a) for the initial period—$100,000; or
(b) for the financial year starting immediately after the end
of the initial period—$100,000 plus the CPI increase for
the financial year, rounded to the nearest dollar
(rounding one-half upwards); or
(c) for a later financial year—the prescribed amount for the
previous financial year plus the CPI increase for the
later financial year, rounded to the nearest dollar
(rounding one-half upwards).
(2) The chief executive must, before the start of each financial
year, publish on the department’s website the prescribed
amount for the financial year.
(3) In this section—
CPI means the all groups consumer price index for Brisbane
published by the Australian Bureau of Statistics.
CPI increase, for a financial year, means the amount worked
out by multiplying the prescribed amount for the previous
financial year by the percentage increase, if any, in the CPI
between—
(a) the March quarter for the financial year before the
previous financial year; and
(b) the March quarter for the previous financial year.
initial period means the period—
(a) starting on the commencement of this section; and
(b) ending on 30 June following the first anniversary of the
commencement of this section.
131 Trust capital paid or applied to be brought into account
(1) This section applies if an amount is paid or applied out of
relevant capital, or a part of relevant capital is applied, under
this division in relation to a beneficiary.
(2) The amount paid or applied, or the value of the part applied,
as the case may be, must be brought into account as part of the
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Trusts Bill 2025
Part 8 Maintenance, education and advancement
share in the trust property to which the beneficiary is or
becomes absolutely or indefeasibly entitled.
Note—
See, however, section 133 in relation to amounts that are taken not to
have been paid or applied.
Division 4 Imposition of conditions
132 Trustee may impose conditions
(1) This section applies to a trustee in exercising a power, whether
under division 2 or 3 or the trust instrument—
(a) to pay or apply an amount of trust income for a
beneficiary’s maintenance, education or advancement
(including past maintenance or advancement); or
(b) to pay or apply an amount out of relevant capital, or
apply a part of relevant capital, for any of those
purposes.
(2) The trustee may impose conditions on the payment or
application of the amount or on the application of the part of
the relevant capital.
(3) Without limiting subsection (2), a condition may require—
(a) the repayment of—
(i) the amount paid or applied; or
(ii) the value of the part of the relevant capital applied;
or
(b) the payment of interest on the amount or value; or
(c) the giving of security for the amount or value.
(4) However, at any time after imposing a condition under
subsection (2), the trustee may—
(a) waive all or part of the condition; or
(b) release all or part of an obligation undertaken, or
security given, because of the condition.
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Trusts Bill 2025
Part 8 Maintenance, education and advancement
(5) A trustee, when imposing a condition about giving security, is
not affected by any restriction on the investment of trust
funds, whether imposed under this Act or otherwise.
133 Amounts repaid or recovered taken not to have been paid
or applied
(1) This section applies if a trustee, in exercising a power
mentioned in section 132(1), imposes a condition under
section 132(2).
(2) An amount repaid to the trustee, or recovered by the trustee, is
taken not to have been paid or applied by the trustee.
134 Trustee not liable for losses
A trustee is not liable for any loss that may be incurred in
relation to an amount of trust income or of relevant capital that
is paid or applied, or a part of relevant capital that is applied,
as mentioned in section 132(1) if the loss arises—
(a) because of a failure to impose any or adequate
conditions under section 132(2); or
(b) without limiting paragraph (a), because of a failure to
take security or adequate security; or
(c) because of a failure to take action to protect any security
taken; or
(d) through the release or abandonment, without payment,
of any security taken; or
(e) from any other matter in relation to the conditions
imposed or the waiver of any condition.
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Trusts Bill 2025
Part 9 Indemnities and protection of trustees and other persons
Part 9 Indemnities and protection of
trustees and other persons
Division 1 Distributing trust property
135 Giving notice of intention to distribute
(1) A trustee who intends to distribute trust property may give
notice of that intention by—
(a) publishing, under subsection (2) or (3), a notice that
requires any person having any claim to, or against, the
trust property, whether as a creditor or beneficiary or
otherwise, to send particulars of the person’s claim to
the trustee by a stated day (the closing day) that is at
least 2 months after the day the notice is published; and
(b) giving any other notices the court may direct.
(2) If the notice under subsection (1)(a) is included in a notice of
intention to apply for a grant, the notice of intention to apply
for a grant must be published in the way required under the
Uniform Civil Procedure Rules 1999.
(3) If the notice under subsection (1)(a) is not included in a notice
of intention to apply for a grant, the notice must be
published—
(a) in a newspaper circulating throughout the State and sold
at least once each week; or
(b) on a website approved for the purpose—
(i) by regulation; or
(ii) by the Chief Justice, by notice published on the
Queensland Courts website.
(4) In this section—
notice of intention to apply for a grant means a notice, in the
approved form under the Supreme Court of Queensland Act
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