New Trusts Act 2025 (QLD): What Trustees and Beneficiaries Must Know Now

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Written by Lily Qu of Grasso Searles Romano lawyers 8 December 2025

Queensland’s long-awaited Trusts Act 2025 (Qld) (“the Act”) introduces the most significant update to the State’s trust law in more than 50 years. The Act received Royal Assent on 19 May 2025 and will commence on a day to be fixed by proclamation. Once in force, it will replace the Trusts Act 1973 (Qld).

The reforms aim to modernise and simplify trust administration, improve governance, and provide stronger protections for beneficiaries. Trustees and advisers will need to understand the new statutory duties and compliance obligations, and beneficiaries should familiarise themselves with their expanded rights under the new framework.

Key Changes:

 1.   Capacity rule: The Act now defines “capacity” and “impaired capacity” consistently with Queensland’s guardianship legislation, providing a clearer framework for determining when a trustee may need to be replaced due to incapacity.

2.   Wider Court access: The jurisdiction of the “court” is expanded to include the District Court. This change increases accessibility and reduces costs, particularly for lower-value or mid-tier trust disputes.

3.   Stricter eligibility for trustees: Minors, insolvent individuals, disqualified bodies and certain corporations can no longer act as trustees.

4.   Codified trustee duties: Trustees must meet clear statutory duties of honesty, care, diligence and proper record-keeping. Professional trustees are held to a higher standard.

5.   Stronger beneficiary protections: Beneficiaries now have statutory rights to access trust records and challenge excessive trustee remuneration. The maximum capital advance increases from $2,000 to $100,000 for maintenance, education or advancement.

6.   Streamlined appointments: Attorneys and administrators may now appoint replacement trustees where capacity issues arise, reducing delays and the need for court applications.

What This Means for You

If you are a trustee, beneficiary or adviser to a trust, it is important to understand how the new Act may affect your existing arrangements. The new Act will apply retrospectively to all Queensland trusts, including those established prior to its commencement.

Many older deeds may therefore need updating to reflect the new statutory duties, eligibility rules and beneficiary rights introduced by the Act.

Need Assistance?

Before the Act commences, we recommend reviewing and updating your trust deed to ensure it aligns with the new statutory framework and to avoid compliance issues or unintended consequences once the reforms take effect.

Our team at Grasso Searles Romano Lawyers can assist with reviewing trust deeds, identifying any gaps, preparing amendments, and drafting new deeds where required, to ensure your trust remains compliant under the new regime. Please contact us for tailored advice.

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Related Reform - Extended Perpetuity Period

Separate from the new Trusts Act, Queensland has extended the maximum trust (perpetuity) period from 80 to 125 years, effective 1 August 2025, under the Property Law Act 2023 (Qld). This change applies to new trusts and may also apply to existing trusts where the deed allows a variation or where a court order is obtained. Any amendment must be made before the current vesting date.

If you would like advice on whether your trust can take advantage of the extended vesting period, our team can assist. Contact us to arrange a consultation with one of our experienced and dedicated lawyers on 07 3236 3999 or email us at reception@gsrlawyers.com.au. None of the above should be construed as legal advice and we recommend you contact us to obtain tailored legal advice to your specific matter.

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