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Trust Law (Australia) prompts for Australian lawyers

These prompts cover discretionary and unit trusts, trustee duties, trust variations, vesting, and beneficiary disputes under Australian trust law. Copy any prompt, replace placeholders with your matter facts, and run it.

In short

A curated library of 25 AI prompts for lawyers advising on Australian trust law. Each prompt is grounded in equitable principles, state Trustee Acts, and leading High Court authority including CPT Custodian v Commissioner of State Revenue. Use them with Quillio for trust structuring, disputes, and administration.

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Research

Research prompts (5)

Research trustee duties and powers

Prompt

Research the duties of a trustee under the Trustee Act [state] and general equitable principles. Cover fiduciary duties, the duty to act impartially, investment powers, and delegation.

Example use: Advising a newly appointed trustee of a family discretionary trust on their obligations.

Research discretionary trust distributions

Prompt

Research the law governing distributions from a discretionary trust in Australia. Cover the trustee's power of appointment, the rule in Schmidt v Rosewood, and the tax consequences of streaming under Division 6 ITAA 1936.

Example use: A trustee considering streaming capital gains and franked dividends to specific beneficiaries.

Research trust vesting and perpetuity rules

Prompt

Research the vesting and perpetuity rules applicable to trusts in [state]. Cover the rule against perpetuities, the statutory perpetuity period, and the consequences of vesting.

Example use: A 70-year-old discretionary trust approaching its vesting date in New South Wales.

Research variation of trust deeds

Prompt

Research the power to vary a trust deed under the trust instrument and the Variation of Trusts Act [state]. Cover the difference between administrative and dispositive variations and beneficiary consent requirements.

Example use: Varying a trust deed to add a new class of beneficiaries to a Queensland discretionary trust.

Research removal and appointment of trustees

Prompt

Research the law governing removal and appointment of trustees under the Trustee Act [state] and the trust instrument. Cover the power of the appointor, court removal under section 70 equivalent, and the Letterstedt v Broers principles.

Example use: Beneficiaries seeking removal of a trustee who has a conflict of interest.
Drafting

Drafting prompts (5)

Draft a discretionary trust deed

Prompt

Draft a discretionary trust deed for a family trust. Settlor: [details]. Trustee: [details]. Primary beneficiaries: [details]. Include standard powers, vesting date, and appointor and guardian provisions.

Example use: A new family discretionary trust for a Melbourne family with three adult children.

Draft a deed of variation

Prompt

Draft a deed of variation to a trust deed. Trust: [details]. Amendment: [details]. Include recitals identifying the power to vary, the specific amendments, and execution provisions.

Example use: Adding a corporate trustee as an alternative trustee to an existing family trust.

Draft a trustee resolution for distribution

Prompt

Draft a trustee resolution for the distribution of trust income and capital for the financial year ending [date]. Trust: [details]. Beneficiaries and amounts: [details]. Include streaming resolutions if applicable.

Example use: A 30 June distribution resolution streaming capital gains to a low-income beneficiary.

Draft a deed of retirement and appointment

Prompt

Draft a deed of retirement and appointment of a new trustee. Retiring trustee: [details]. Incoming trustee: [details]. Trust: [details]. Include vesting of trust property and release provisions.

Example use: Replacing an individual trustee with a corporate trustee for asset protection.

Draft a beneficiary loan agreement

Prompt

Draft a loan agreement between a trust and a beneficiary for an unpaid present entitlement. Trust: [details]. Beneficiary: [details]. Amount: [details]. Include Division 7A compliant terms if the trust has a UPE to a corporate beneficiary.

Example use: A trust with a $200,000 UPE owed to a family company needing a compliant loan agreement.
Review

Review prompts (5)

Review a trust deed for deficiencies

Prompt

Review this trust deed for legal deficiencies. Check the definition of beneficiaries, trustee powers, variation clauses, appointor provisions, vesting date, and stamping requirements.

Example use: A 1990s trust deed being reviewed before a major property acquisition.

Review a distribution resolution

Prompt

Review this trustee distribution resolution for compliance with the trust deed and Division 6 ITAA 1936. Check that the resolution was made before year-end, covers all net income, and any streaming elections are valid.

Example use: A resolution streaming franked dividends to a corporate beneficiary.

Review a deed of variation

Prompt

Review this deed of variation to a trust deed. Verify the power to vary exists, the variation does not create a resettlement, and stamp duty implications have been addressed.

Example use: A variation widening the definition of beneficiaries in a South Australian trust.

Review trust compliance for a property purchase

Prompt

Review this trust's compliance position before a significant property purchase. Check the trust deed powers, trustee authority, land tax surcharge exposure, and stamp duty treatment.

Example use: A discretionary trust purchasing a $3 million commercial property in Victoria.

Review an appointor succession plan

Prompt

Review this appointor succession arrangement. Verify the trust deed permits the succession mechanism, the appointor's power is correctly defined, and estate planning implications are addressed.

Example use: An elderly appointor seeking to transfer the appointor role to the next generation.
Client comms

Client comms prompts (5)

Explain trust structures to a new client

Prompt

Draft a plain-English briefing explaining the key Australian trust structures — discretionary, unit, and hybrid trusts. Cover the roles (trustee, appointor, guardian, beneficiary), tax treatment, and asset protection.

Example use: For a client deciding between a discretionary trust and a company for a new business.

Explain trustee duties

Prompt

Draft a plain-English letter to a newly appointed trustee explaining their duties and obligations. Cover fiduciary duties, record keeping, distribution obligations, and personal liability.

Example use: For an adult child appointed as trustee of the family trust.

Explain trust vesting

Prompt

Draft a plain-English letter explaining what happens when a trust vests, the options available (extend, wind up, distribute), and the tax and stamp duty consequences of each option.

Example use: For a family whose trust is approaching its 80-year vesting date.

Explain Division 7A and trusts

Prompt

Draft a plain-English briefing explaining how Division 7A ITAA 1936 applies to trusts with unpaid present entitlements owed to corporate beneficiaries. Cover compliant loan agreements and deemed dividend risks.

Example use: For a trustee who has been distributing to a bucket company for several years.

Explain trust dispute options

Prompt

Draft a plain-English letter to a beneficiary explaining their options in a trust dispute. Cover information rights, trustee removal, judicial advice applications, and the costs of litigation.

Example use: For a beneficiary who suspects the trustee is not acting in the beneficiaries' interests.
Strategy

Strategy prompts (5)

Strategy for trust restructure

Prompt

Develop a strategy for restructuring a family trust to achieve [objective]. Current structure: [details]. Consider resettlement risks, CGT consequences, stamp duty, and trust law constraints.

Example use: Splitting a family trust into separate trusts for each adult child to reduce family conflict.

Strategy for protecting the appointor role

Prompt

Develop an estate planning strategy for protecting the appointor role in a family trust. Current appointor: [details]. Succession plan: [details]. Consider loss of mental capacity, death, and family disputes.

Example use: An ageing patriarch wanting to ensure control passes to a specific child.

Strategy for trust wind-up

Prompt

Develop a strategy for winding up a trust. Trust: [details]. Assets: [details]. Beneficiaries: [details]. Cover CGT events, stamp duty, distribution mechanics, and final tax return obligations.

Example use: Winding up a discretionary trust holding two rental properties and a share portfolio.

Strategy for defending a trustee removal application

Prompt

Develop a defence strategy for a trustee facing a beneficiary removal application. Facts: [details]. Consider the Letterstedt v Broers principles, evidence of proper administration, and alternative dispute resolution.

Example use: A trustee accused of favouring one beneficiary branch over another.

Strategy for trust and estate planning integration

Prompt

Develop a strategy for integrating a client's trust structure with their estate plan. Family: [details]. Trusts: [details]. Wills: [details]. Consider testamentary trusts, appointor succession, and superannuation death benefit nominations.

Example use: A client with three family trusts, an SMSF, and a blended family.
Use with Quillio

Run these prompts grounded in AU law

Quillio is built for Australian trust law practice — every research output cites the relevant Trustee Act, leading case law, and ATO rulings on trust taxation. See /practice-areas/commercial-lawyers for details, or start a free trial at /free-trial to use these prompts on your own matters.

These prompts are templates — always verify outputs against source material, current legislation, and the specific trust instrument before relying on them in client matters.

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