Out with the old and in with Queensland’s new Trusts Act

May 12, 2026

From 28 April 2026, we welcome the new Trusts Act 2025 (Qld) (the Act) and say good-bye to its predecessor Trusts Act 1973 (Qld) marking the most significant reform in Queensland trust law in half a century.

The Act reflects recommendations made by the Queensland Law Reform Commission’s 2013 review and offers a self-proclaimed ‘simplified legislation’ that removes obsolete provisions to modernise our trust laws.

This means big changes for trustees, beneficiaries and advisors involved in trusts in Queensland.

Key aspects of the new Act include: 

The Act overrides trust deeds 

Importantly, the mandatory provisions of the Act will apply despite any contrary intention or omission in the trust deed.

While trust deeds can still confer broader powers or stricter duties, they can no longer exclude or reduce the minimum statutory standards imposed by the Act.

This is particularly relevant for those with older trust deeds. Clauses that attempt to limit trustee liability or exclude duties (such as exculpation clauses) may now be ineffective to the extent they fall below the statutory baseline.

New Statutory Duties for Trustees

The new Act codifies a framework of minimum statutory duties which will apply to all trustees and cannot be excluded by the trust deed.

The legislation expressly provides that all trustees must:

• exercise care, diligence and skill;
• act honestly and in good faith;
• keep accounts and records;
• retain records for at least 3 years after termination of the trust; and
• make accounts available to beneficiaries on request.

Whilst the concept of these core duties is by no means new, it is the first time they have been implemented into legislation. This will make breaches clearer and more easily enforceable by beneficiaries.

In particular, professional trustees and trustees with relevant expertise should take note as they will be held to a higher standard under the regime.

Appointment of Trustees

The process of appointing and replacing a trustee has been simplified.

This includes:

• the power of appointment can now be exercised by other mechanisms provided for in the trust deed;
• practical new appointment powers which allow for an administrator, personal representative or attorney to be appointed in place of a deceased or incapacitated sole trustee; and
• a limitation to the number of trustees to four (with few exceptions).

Additionally, there are now safeguards for beneficiaries of a trust which prevent the appointment of trustees who are:

• a minor;
• insolvent under administration;
• a Chapter 5 Body Corporate (a company which is being wound up, is under administration, or an receiver/manager has been appointed etc); or
• disqualified from being appointed as a trustee by a court order.

Stronger Rights for Beneficiaries

In more good news for beneficiaries, the Act strengthens the rights of beneficiaries and provides clearer guidelines on information they are entitled to receive from trustees.

This includes:

• new and retrospective remedies for beneficiaries where trust property has been wrongfully distributed;
• an increase to the threshold of trust capital which may be applied for the maintenance, education and advancement of beneficiaries from $2,000 under its predecessor to $100,000, plus annual CPI indexation or one-half of the relevant capital if that is greater; and
• expanded court powers to more efficiently and effectively review administration of the trust, including powers to disqualify or replace officeholders or to review trustee remuneration.

These welcome reforms provide beneficiaries with greater transparency and will better equip them to hold trustees to account.

Trustee Investment Powers 

While the general investment framework of its predecessor remains, the Act expands upon governance settings and introduces more flexibility in how trustees manage investments.

Trustees may now delegate their investment power on such terms (including relating to remuneration) they consider appropriate. Notwithstanding, the trustee remains fully liable for the acts or omissions of their delegate as if they were the trustee’s own.

Having regard to the new statutory duties, trustees should exercise caution to:

• carefully select and oversee their delegate;
• ensure their delegate is properly informed of their duties under the Act; and
• clearly document their investment decisions and adhere to review processes.

What Trustees should do now

Trustees and advisers should act proactively to:

• review your trust deed against the new mandatory provisions;
• check trustee eligibility;
• improve or implement proper record-keeping;
• review investment and delegate arrangements; and
• seek legal advice.

Fox and Thomas regularly advise trustees, beneficiaries and business owners on trust law and related matters.

If you would like to understand how the new Act affects your trust structure, your duties as a trustee, or your rights as a beneficiary, please contact our office.