Navigating Statutory Trusteeship: Delivering a Fair and Effective Resolution

Client Overview

A husband, wife and their son jointly owned a residential property in Queensland, with the parents holding 1% and the son 99%. The son solely occupied the property.

A dispute arose over money owed by the son and attempts to resolve it failed. The husband and wife applied to the Supreme Court of Queensland (the Court) to appoint an independent trustee to manage and sell the property, repay debts, and distribute proceeds — allowing the family to achieve finality and move forward.

​Engagement Scope​

We were appointed by the Court as Statutory Trustees to undertake an orderly sale of the property under dispute and to distribute the proceeds in accordance with the Order of the Court.

Our Approach

Upon commencement of the Statutory Trustee appointment, we undertook an urgent review of the property to determine the most appropriate recovery and realisation steps to be undertaken in the circumstances, in order to carry out the Order of the Court efficiently and effectively.

Key tasks undertaken were as follows:

• • Arrange appropriate insurance coverage over the property.
• • Apply for the Statutory Trustees to be recorded on title of the property to facilitate a sale process.
• • Notify relevant parties (co-owners, banks, Council, etc.) of the Statutory Trustee’s appointment.
• • Obtain a current market valuation to inform future decisions.
• • Review any outstanding mortgages, liens, or legal encumbrances.
• • Consider co-owners’ interests and any potential conflicts.
• • Obtain professional advice where necessary, from real estate agents, valuers, accountants, lawyers, etc.
• • Ensure all decisions comply with statutory duties and the Court’s orders.
• • Prepare the property for sale, including ensuring vacant possession for settlement.
• • Engage real estate agents and manage marketing and negotiation.
• • Ensure sale proceeds are maximised and transaction is legally compliant.
• • Keep detailed records of all steps and communications.
• • Pay off mortgages, rates, taxes, and Statutory Trustee fees from the sale proceeds.
• • Resolve any outstanding claims or disputes regarding the property, including enacting the terms of a subsequent Deed of Settlement regarding the debt owing by the son to the husband and wife.
• • Allocate remaining funds to entitled parties according to ownership shares or Court directions.
• • Prepare a final financial account showing all income, expenses, and distributions.

Key Findings and Outcomes​

With the property sold and all parties repaid, what began as a complex family dispute concluded with a fair and practical resolution. The outcome highlights how Statutory Trusteeship can provide structure, transparency and a pathway to closure, when negotiations reach an impasse.

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