That’s easy isn’t it- the trustee? But what about the other roles?
An appointor (sometimes called a principal, protector, or guardian depending on the terms of the relevant trust deed) is a key role in many discretionary trusts. The appointor is the person or entity with the legal power to appoint and remove the trustee. This power is significant because the trustee controls the day-to-day management of the trust, including in a discretionary trust, how income and capital are distributed to beneficiaries.
Unlike a trustee, the appointor typically has no obligation to manage trust assets or make distribution decisions. Instead, their influence comes from the ability to replace the trustee if they are acting improperly, incompetently, or contrary to the purposes for which the trust was established by the settlor.
The appointor’s powers and duties are contained in and determined by the terms of the trust deed, which may give them additional rights or responsibilities such as approving certain transactions, vetoing changes, or sometimes appointing themselves as trustee. Because the appointor can ultimately shape who controls the trust, they are often considered the true controller of a discretionary trust.
A recent Queensland Court decision however has re- enlivened some debate about the powers of the trustee compared with the powers of the appointor.
In Staley v Hill Family Holdings Pty Ltd [2025] QCA 95 (3 June 2025) there was a dispute as to whether a variation power in the trust deed (most trust deeds have variation powers) would enable the trustee to remove the named appointor of the trust and appoint a replacement appointor.
The primary judge found that the variation to the trust deed by the corporate trustee was valid in removing and replacing the appointor. This was upheld by the Court of Appeal. The Court rejected arguments that the use of power of variation by the trustee to remove an appointor was either beyond the scope of the power, or destroyed the substratum of the trust.
It all comes down to the wording and provisions of the trust deed itself.
Many deeds allow for a mechanism to replace the appointor—for example, upon death, incapacity, or resignation—to ensure continuity of control. In practice, the appointor acts as the safeguard that ensures the trust is managed consistently with the long-term intentions of the trust’s creator. If the trustee can remove the appointor then that safeguard will be compromised.
If you have a trust or are considering establishing one think carefully about the powers to be held by the respective controllers to ensure the trust operates as intended.
Speak to one of our lawyers on 08 8344 6422.