Queensland is preparing for a comprehensive overhaul of its trust law framework. The Trusts Act 2025 (QLD) is scheduled to commence on 28 April 2026, replacing the longstanding 1973 regime.
This reform represents a significant modernisation of trust administration, bringing Queensland into line with contemporary national standards and current trust practices.
Key Changes
Expanded trustee powers
Trustees will have the powers of an absolute owner (subject to their duties and the trust deed), enabling more flexible and efficient management of trust assets.
Codified trustee duties
For the first time, core trustee obligations are clearly set out in legislation. These include acting in good faith, exercising care and skill, prioritising beneficiaries’ interests, and maintaining proper records. This reduces uncertainty and strengthens accountability.
Stronger governance
New eligibility rules will prevent minors, insolvent individuals and disqualified persons from acting as trustees, improving governance standards.
Simplified succession
The process for appointing and replacing trustees will be more straightforward, with less reliance on court involvement.
Greater transparency
Beneficiaries will have enhanced rights to access trust information, increasing oversight of trustee conduct.
A supporting Trusts Regulation 2026 is expected to provide further operational detail, particularly in relation to transitional arrangements and administrative requirements.
Implications for Clients and Advisers
Higher compliance expectations
Trustees will face increased obligations, particularly around record-keeping and decision-making.
Increased beneficiary oversight
Expanded information rights may lead to more active beneficiary engagement and, in some cases, increased disputes.
More flexible trust management
While trustees gain broader powers, these operate within clearer statutory boundaries, requiring careful exercise.
Recommended Actions
To prepare for commencement, advisers and clients should:
- Review existing trust deeds
Assess compatibility with the new framework and identify provisions requiring amendment. - Update precedents and templates
Align all documentation with the new powers, duties and eligibility requirements. - Audit trustee arrangements
Confirm that current trustees meet the new eligibility criteria. - Enhance governance practices
Implement robust record-keeping and reporting processes to meet increased transparency obligations. - Engage with clients early
Discuss how the reforms may impact control, administration and risk within existing trust structures.
Conclusion
The commencement of the Trusts Act 2025 (QLD) marks a pivotal shift for estate planning and fiduciary practice in Queensland. Early, proactive preparation will be key to ensuring compliance and making effective use of the modernised regime.
