General Information Only. This article explains general principles of Queensland estate administration. It is not legal, tax or banking advice.…
General Information Only: This article is general information, not legal advice. For advice specific to your circumstances, consult a qualified Queensland estate lawyer.
Estate Executor’s Guide — a four-part series · Part 4. This is the final part of our executor series. It follows Part 1: Getting Started, Part 2: Administering the Estate and Part 3: Court Proceedings by and Against Executors and Administrators. Here we look at what happens when an executor’s job does not end at distribution—because the will asks them to hold and manage assets as a long-term trustee.
Most executors finish their work once debts and tax are paid and the estate is distributed. But some wills create an ongoing trust: money or property to be held and managed for years—sometimes decades—for the benefit of children, a surviving partner, or a vulnerable beneficiary. When that happens, the executor (or a separately named trustee) steps into a long-term role governed by the will and by Queensland trust law.
Quick answer: A long-term trustee is an executor whose job continues after the estate is distributed, because the will directs that assets be held and managed — in a testamentary trust — for beneficiaries over months, years or even decades. In Queensland the role is governed by the will together with the Trusts Act 2025 (Qld), which sets tiered standards of care, a duty of honesty and good faith, record-keeping obligations, and limited powers to delegate investment decisions while retaining personal responsibility.
Key Takeaways
- Every executor is a trustee of estate assets until they are distributed; some wills extend that role for years by creating a testamentary trust.
- A long-term trustee in Queensland is governed by the terms of the will and by the Trusts Act 2025 (Qld), the current trusts statute (which replaced the former Trusts Act 1973—confirm the exact commencement date and current section references with your solicitor).
- A trustee’s central obligation is to act in the best interests of all beneficiaries, preserving capital while producing reasonable income, and balancing the interests of income and capital beneficiaries fairly.
- Trustees generally cannot delegate their decision-making, but they can—and usually should—take professional advice on investment, tax and property matters.
- Long-term trusteeship carries the same personal accountability as the executor role: careful record-keeping, prudent investment and regular review are essential.
The Executor as Trustee
Every executor is, in a sense, already a trustee. From the moment of death until assets are sold or handed over, the executor holds estate property on trust for those entitled to it. For many estates that period is short. But a will can deliberately extend it by directing that assets be held on an ongoing basis—this is a testamentary trust.
Common examples include a life estate (allowing a surviving spouse to live in the family home or receive income for life, with the capital passing to children afterwards), a trust for minor children (holding their inheritance until they reach a set age), and a protective or special-needs trust for a vulnerable beneficiary. In each case the trustee’s job continues long after the ordinary administration described in Part 2 is complete.
The will may appoint the executor to continue as trustee, or it may name a different person or a trustee company for the long-term role. If you are unsure whether you are being asked to take on an ongoing trust, our overview of what an executor is and what they do is a useful starting point.
The Legal Framework: The Trusts Act 2025 (Qld)
A long-term trustee in Queensland is governed by two things working together: the terms of the will, which set the purpose of the trust and the trustee’s specific powers, and the general trusts statute, the Trusts Act 2025 (Qld). The Trusts Act 2025 is the current trusts legislation in Queensland, having replaced the former Trusts Act 1973 when it commenced in 2026. Where the will and the Act cover the same ground, a properly drafted will can expand or vary many of the statutory default powers, so the trust deed should always be read first.
The Act sets out the standard of care a trustee must meet, and importantly it is tiered according to who the trustee is:
- Professional trustees (for example, a trustee company or a solicitor acting in that capacity) are held to the standard of a prudent person engaged in that profession or business (Trusts Act 2025 (Qld) s 60).
- Certain non-professional trustees who hold themselves out as having particular expertise are judged against that expertise (s 61).
- All other trustees — including a family member appointed under a will — must exercise the care, diligence and skill of a prudent person of business managing the affairs of another (s 62).
Beyond the standard of care, every trustee must act honestly and in good faith (s 63). A trustee also has a general-law duty to act even-handedly between beneficiaries — for example, balancing the interests of a life tenant who receives income against those of the beneficiaries who will eventually take the capital. This even-handedness duty flows from long-standing trust principles rather than from a single numbered section, so it is described here as a general-law obligation.
Long-Term Asset and Investment Management
Because a trust can last many years, sound asset and investment management is at the heart of the role. Trustees must keep property well maintained and insured, and ensure investments remain suitable as circumstances and markets change. Preserving the trust’s capital is usually the priority: the principal should remain intact—or grow—as the will-maker intended, so the long-term objectives can be met.
A recurring challenge is balancing competing interests. A life tenant or a child needing education expenses wants income now; the beneficiaries who will eventually receive the capital want it preserved and growing. A trustee must hold these interests fairly and even-handedly, and should document the reasoning behind significant decisions.
| Interest | What they want | Trustee’s balancing duty |
|---|---|---|
| Income beneficiary (e.g. life tenant, child) | Regular income and maintenance/education funding now. | Generate reasonable income without eroding capital. |
| Capital beneficiary (e.g. remainder beneficiaries) | The principal preserved or grown for later distribution. | Invest prudently for long-term preservation and growth. |
| All beneficiaries | Honest, competent administration. | Act even-handedly, keep records, review regularly. |
Who Controls and Can Replace the Trustee
Because a testamentary trust can last a very long time, the will usually needs to answer a practical question: what happens if the trustee dies, becomes incapable, or simply wants to step down years into the trust? Many well-drafted wills name an appointor (sometimes called a principal or guardian of the trust) — a person given the power to remove a trustee and appoint a replacement. The appointor does not run the trust day-to-day, but they hold the ultimate control over who does.
If the will is silent, Queensland trust law provides mechanisms for appointing new or replacement trustees, and in some situations the Supreme Court can appoint or remove a trustee. Because these succession-of-trustee questions are easy to get wrong and expensive to fix later, a trustee facing a change of office should get advice before acting. Clarifying who can replace the trustee — and ensuring a willing successor exists — is one of the most valuable things a long-term trust arrangement can build in from the start.
Common Types of Long-Term Testamentary Trust
Wills create ongoing trusts for many reasons. Understanding which kind you are administering shapes almost every decision you will make as trustee.
| Type of trust | Typical purpose | Key trustee focus |
|---|---|---|
| Life estate / life interest | A surviving spouse or partner lives in the home or receives income for life; capital passes to others (often children) afterwards. | Balance the life tenant’s income and use against preserving capital for the remainder beneficiaries. |
| Trust for minor children | Holds a child’s inheritance until they reach an age set by the will (often 18, 21 or 25). | Fund maintenance and education from income where allowed; preserve and grow capital until the vesting age. |
| Protective / special-needs trust | Provides for a vulnerable beneficiary who cannot manage funds themselves. | Careful, tailored management; often coordination with support and, where relevant, benefits considerations. |
| Discretionary testamentary trust | Gives the trustee discretion over how income and capital are distributed among a class of beneficiaries. | Exercise discretion genuinely and fairly; document the reasons for distributions. |
Whichever applies, the will’s wording controls the trustee’s powers and the trust’s purpose, so the starting point is always to read the trust provisions of the will carefully—and to get advice if they are unclear.
A Note on Tax for Testamentary Trusts
Testamentary trusts can have important tax consequences, particularly where income is distributed to children. Broadly, income that a testamentary trust distributes to a minor beneficiary may be taxed on more favourable terms than ordinary trust income paid to a child, which is often taxed at penalty rates. The rules here are set by Commonwealth tax law and are detailed and fact-specific. A trustee should confirm the current tax treatment with a qualified accountant or tax adviser before making distribution decisions — this article does not set out the specific tax provisions and should not be relied on for tax planning.
Professional Assistance and the Limits of Delegation
A trustee is expected to bring reasonable skill to the role, but the law does not require a family trustee to become an investment expert overnight. The general position is that a trustee must exercise their own judgment and cannot simply hand the whole trusteeship to somebody else. There is, however, an important and often-misunderstood exception for investment decisions.
Under the Trusts Act 2025 (Qld) s 76, a trustee may authorise another person to exercise the trustee’s investment powers — for example, engaging a licensed financial adviser or investment manager to manage the trust’s portfolio. This is a genuine statutory power, so the common belief that a trustee “can never delegate anything” is not correct. What the section does not do is transfer responsibility: the trustee retains liability for the trust and must properly select, instruct and supervise the person they authorise. Delegating the mechanics of investing does not delegate the duty of care.
Trustees are also entitled to obtain and pay for professional help — legal, accounting, tax and financial advice — out of the trust, and are protected by a statutory right of indemnity for expenses properly incurred in administering the trust (Trusts Act 2025 (Qld) s 57). Keeping evidence that an expense was properly incurred is the practical key to relying on that indemnity.
Practical Procedures for Long-Term Trustees
To manage a trust effectively over many years, trustees often put practical systems in place:
Open a dedicated trust bank account. One of the first practical steps a long-term trustee should take is to set up a separate bank account held in the name of the trust, and never to mix trust money with personal funds. A dedicated account makes the trustee’s duty to keep trust property separate easy to demonstrate, keeps the s 64 accounting records clean, and avoids awkward questions from beneficiaries about where money has gone. All trust income and expenses should flow through this account.
- Real estate management: appointing a managing agent to oversee maintenance, collect rent and handle leasing where the trust holds property.
- Regular inspections: arranging half-yearly property inspections and reports to track condition and address issues early.
- Investment review: reviewing the investment strategy periodically so it remains prudent and suited to the beneficiaries’ needs—proper valuation of estate and trust assets underpins good decisions.
- Accurate accounts: keeping clear trust accounts and being ready to account to beneficiaries, distinguishing income from capital.
- Tax compliance: lodging trust tax returns and meeting the trust’s obligations each year.
- Periodic review: revisiting the arrangement as beneficiaries’ circumstances change—our guide on reviewing and updating an estate plan is a helpful companion, and trusts for children connect closely with estate planning for young families.
Trustees who are also entitled to be paid for their work should understand the rules on commission and remuneration.
Common Long-Term Trustee Mistakes to Avoid
Because a trustee’s accountability runs for the life of the trust, small lapses can compound over years. The most common problems include:
- Favouring one class of beneficiary. Chasing high income for a life tenant while eroding capital—or hoarding capital while starving an income beneficiary—breaches the duty of even-handedness.
- Mixing trust funds with personal money. Trust assets must be kept strictly separate, with clear records at all times.
- Neglecting the investment strategy. Leaving funds in an unsuitable or stagnant investment for years can itself be a breach; the strategy should be reviewed and remain prudent.
- Failing to keep accounts. Beneficiaries are entitled to be kept informed and a trustee who cannot account for income, capital and expenses is exposed.
- Delegating the decision, not just the advice. Taking professional advice is prudent; handing over the actual decision-making is not permitted.
- Ignoring changed circumstances. A trust that suited a beneficiary as an infant may need a different approach as they grow—review regularly.
Getting advice early, and building good systems from the start, is the best protection for both the beneficiaries and the trustee.
Records, Reporting and How Long the Trust Lasts
Good record-keeping is not optional for a long-term trustee — it is a statutory duty and the trustee’s best protection if a beneficiary later questions how the trust was run. Under the Trusts Act 2025 (Qld) s 64, a trustee must keep accurate accounts and records of the trust and, importantly, must retain those records for at least three years after the trust ends. The obligation therefore outlives the trust itself.
Beneficiaries also have a right to information. Under s 65, a trustee must make the trust accounts available for inspection by a beneficiary who is entitled to see them. Handling reasonable information requests openly and promptly is one of the simplest ways a trustee can avoid disputes and demonstrate that they have acted honestly and in good faith.
As for how long a trust can run, Queensland changed the old “rule against perpetuities” position. Under the Property Law Act 2023 (Qld) s 201, the perpetuity period is now 125 years. A testamentary trust created under a Queensland will can therefore continue for a very long time — which is exactly why long-term trustees need durable record-keeping, a clear succession of trustees, and a plan for who takes over the role in the decades ahead.
Winding up the trust
Most testamentary trusts eventually end — for example, when a beneficiary reaches a specified age, when the trust’s purpose is fulfilled, or on a date set by the will. Winding up properly means calling in and valuing the remaining assets, paying any final trust expenses and tax, preparing final accounts for the beneficiaries, distributing what is left in accordance with the will, and obtaining releases where appropriate. Because the s 64 record-retention duty continues for three years afterwards, the trustee should archive the final accounts and supporting documents rather than discarding them once distribution is complete.
When to Get Legal Help
Long-term trusteeship is one of the more demanding roles in estate administration, and the stakes—years of management, competing beneficiary interests and personal liability—are high. If at any point you need legal involvement in the administration or in running an ongoing trust, it is worth getting advice early rather than after a problem arises. A solicitor can confirm the current provisions of the Trusts Act 2025 (Qld), review the trust terms in the will, and help you set up systems that protect both the beneficiaries and you as trustee.
Frequently Asked Questions
Is an executor always a long-term trustee?
No. Most executors finish their role once debts and tax are paid and the estate is distributed. A long-term trustee role only arises where the will directs that assets be held and managed on an ongoing basis — in a testamentary trust — rather than distributed outright.
What standard of care does a family-member trustee have to meet?
Under the Trusts Act 2025 (Qld) s 62, a non-professional trustee such as a family member must exercise the care, diligence and skill of a prudent person of business managing another person’s affairs. Professional trustees are held to a higher, profession-based standard under s 60.
Can a trustee hand investment decisions to a financial adviser?
Yes, within limits. Section 76 of the Trusts Act 2025 (Qld) allows a trustee to authorise another person to exercise the trustee’s investment powers. However, the trustee remains liable and must properly select, instruct and supervise that person — delegating the task does not delegate the responsibility.
How long can a testamentary trust last in Queensland?
Under the Property Law Act 2023 (Qld) s 201, the perpetuity period is 125 years, so a trust can potentially continue for a very long time depending on how the will is drafted.
How long must a trustee keep the trust records?
The Trusts Act 2025 (Qld) s 64 requires a trustee to keep accurate accounts and records and to retain them for at least three years after the trust ends.
Continue the Series
- Part 1: Estate Executor’s Guide — Getting Started
- Part 2: Estate Executor’s Guide — Administering the Estate
- Part 3: Estate Executor’s Guide — Court Proceedings by and Against Executors and Administrators