SQ and IQ

In the case of SQ and IQ, the Supreme Court of Queensland considered whether an administrator appointed under the Guardianship and Administration Act 2000 (Qld) could exercise the power of a trustee of a discretionary family trust. The dispute arose from the estate of SQ, who had appointed IQ as the trustee of a discretionary family trust. Following SQ's incapacity, IQ applied to be appointed as the administrator of SQ's estate. The court had to determine whether the authority of the administrator could extend to exercising the power as trustee of the discretionary family trust.

The primary legal issue before the court was whether the State Administrative Tribunal could vest in an administrator the power to act as trustee of a discretionary family trust. The court examined the relevant provisions of the Guardianship and Administration Act 2000 (Qld), specifically sections 69 and 71, which outline the authority of an administrator and the functions that may be vested in them. The court found that, while the Act does not explicitly prohibit an administrator from acting as a trustee, the nature of the trustee's power, which involves discretion and the ability to make decisions for beneficiaries, is not consistent with the role of an administrator who must act in the best interests of the represented person.

The court concluded that the authority of an administrator does not extend to exercising the power of a trustee of a discretionary family trust. The court emphasised that the powers of a trustee are inherently different from those of an administrator, as trustees have the ability to make decisions for beneficiaries, which conflicts with the requirement for an administrator to act in the best interests of the represented person. Therefore, the court held that the State Administrative Tribunal should not vest in an administrator the power to act as trustee of a discretionary family trust.

The court ordered that the State Administrative Tribunal should not vest in the administrator the power to act as trustee of the discretionary family trust. The court left the question of who should act as trustee of the discretionary family trust to be determined by the parties involved.