Trusts Bill 2024
Plain English Summary
Overview
This bill replaces Queensland's 50-year-old Trusts Act 1973 with modernised legislation based on recommendations from the Queensland Law Reform Commission. It updates the rules governing how trusts are managed, giving trustees clearer powers and duties while strengthening protections for beneficiaries. This bill lapsed at the end of the 57th Parliament and did not become law.
Who it affects
Anyone involved with a trust in Queensland — whether as a trustee, beneficiary, legal adviser, or charitable organisation — would have been affected. The changes would have been most significant for professional trustees, families managing trusts, and smaller charities seeking to update their trust purposes.
Key changes
- Trustees would receive all the powers of an absolute owner of trust property, subject to new statutory duties of care, honesty, good faith and record-keeping
- Children, bankrupts, certain insolvent corporations, and court-disqualified persons would be prevented from being appointed as trustees
- The capital a trustee can apply for a beneficiary's maintenance, education or advancement would increase from $2,000 to $100,000, indexed annually to inflation
- New mechanisms would allow replacement of a last continuing trustee who has died, lost capacity, or become bankrupt without needing to go to court
- Trustees of smaller charitable trusts could apply to the Attorney-General instead of the Supreme Court to change the trust's purposes, reducing costs
- The District Court would gain jurisdiction over trust matters within its monetary limit, making dispute resolution more accessible and affordable
Bill Journey
▸Committee21 May 2024View Hansard
Referred to Community Safety and Legal Affairs Committee
The Housing, Big Build and Manufacturing Committee examined the Trusts Bill 2024 and tabled its report in August 2024. The committee recommended the bill be passed, while also recommending the Department of Justice and Attorney-General consider including a definition for 'appoint' to ensure it does not restrict who can hold property under a remedial constructive or resulting trust. The bill lapsed when the 57th Parliament was dissolved on 1 October 2024, and the incoming government noted the recommendations were not adopted but would be reviewed if a similar bill is introduced.
Key findings (5)
- The bill aimed to replace the Trusts Act 1973, which had not been substantially amended since commencement, with modern legislation based on contemporary drafting practices.
- The Queensland Law Society raised concerns about the requirement for court approval to appoint more than four trustees, suggesting a concurrent power for the Attorney-General to reduce costs.
- The department confirmed the bill's approach was consistent with the Queensland Law Reform Commission's final report recommendations.
- Stakeholders raised concerns about whether the definition of 'appoint' could unintentionally restrict who may hold property under remedial constructive or resulting trusts.
- The bill lapsed upon dissolution of the 57th Parliament and was not re-introduced in the 58th Parliament.
Recommendations (2)
- The committee recommends the Trusts Bill 2024 be passed.
- The committee recommends the Department of Justice and Attorney-General considers including a definition for 'appoint' in the Trusts Bill 2024 to ensure it does not restrict who can be deemed to hold property under a remedial constructive or resulting trust.
Committee report tabled