With the introduction of the Trusts Bill 2025, Queensland is modernising its trust law framework for the first time in over 50 years. For property owners, family trust users, and investors, the new legislation introduces significant changes that impact how trusts are created, managed, and used in real estate transactions.
As a leading Brisbane-based property law firm, Ensure Legal explains how the new legislation affects our clients and what proactive steps they should take.
1. More Investment Flexibility for Trustees
Under the new Trusts Bill, trustees are no longer restricted to investing only in conservative, “authorised” asset classes. Instead, the legislation introduces a “prudent investor” duty (sections 67–71), allowing trustees to:
- Invest directly in real estate, including residential, commercial, and development properties;
- Borrow against trust property for investment purposes;
- Lease or develop trust-owned land;
- Use diversified investment strategies tailored to beneficiaries’ interests.
Impact: Family trusts and discretionary trusts can now take a more active role in property development and investment, with fewer legal limitations.
2. Easier Vesting and Transfer of Trust Property
Sections 34–41 of the Bill simplify the legal process of vesting trust property, particularly after the death or resignation of a trustee. This is especially relevant where property titles are held in the name of a trust, such as:
- Residential or commercial properties;
- Investment units;
- Land banking assets.
Impact: Property held in trust can be transferred more efficiently to new trustees or beneficiaries, with fewer risks of delays or disputes.
3. Clear Rules on Appointment and Removal of Trustees
The Trusts Bill provides modernised provisions for replacing or removing trustees due to death, incapacity, insolvency, or unwillingness to act (sections 20–30). The law also sets limits on the number of trustees (section 14), unless court approval is obtained.
Impact: Trusts involved in property holding structures can now ensure better continuity and risk management by clearly defining how and when trustees can be changed.
4. Increased Duties and Accountability
Trustees now have statutory duties to:
- Act honestly and in good faith (section 63);
- Exercise care, diligence, and skill (section 60);
- Keep proper records and provide them to beneficiaries (sections 64–65);
- Regularly review the performance of trust investments (section 73).
Impact: Trustees managing property assets must document and justify key decisions—especially where land is being developed, mortgaged, or sold.
5. Court Powers and Protections in Property Disputes
The Bill expands the Queensland Supreme Court’s powers to:
- Resolve disputes between trustees and beneficiaries;
- Vary trust terms;
- Approve dealings with property held on trust for children or incapacitated persons (sections 166–184).
Impact: Families using trusts to hold real estate will benefit from more structured dispute resolution processes and clearer protections.
What Should Property Clients Do Now?
Ensure Legal recommends the following steps:
- Review your existing trust deed to ensure compliance with the new legislation;
- Clarify investment powers and trustee appointment clauses, especially if the trust owns or plans to purchase Queensland real estate;
- Ensure your records and financial accounts are current, in case of future dispute or audit;
- Seek legal advice before transferring or developing property held in trust, to avoid unintended tax or legal consequences.
Speak to a Queensland Trust and Property Law Expert
The Trusts Bill 2025 creates new opportunities and responsibilities for anyone holding or managing property through a trust. At Ensure Legal, we specialise in helping individuals and families structure their trusts to maximise asset protection, succession planning, and property investment outcomes.
📞 Contact our team today for tailored legal advice on trusts and real estate.
