Significant changes are coming to the law governing trusts in Queensland introduced by the new Property Law Act 2023 (Qld).
What’s Changing?
From 1 August 2025, the current perpetuity period (also commonly known as the vesting date) of 80 years for trusts governed by Queensland law is extended to125 years, a substantial increase of 45 years from the current limit.
It has important implications for intergenerational wealth management and tax planning, as this extended perpetuity period may help beneficiaries defer adverse tax and duty consequences that can arise when a trust ends abruptly.
Who Does This Apply To?
The change applies to all types of trusts governed by Queensland law, including but not limited to:
- discretionary (‘family’) trusts;
- testamentary trusts (trusts created in the terms of a Will);
- unit trusts; and
- bare trusts.
Can Existing Trusts Be Extended?
Existing Queensland trusts may adopt the new 125 year perpetuity period by varying the terms of the trust deed.
However, a trust can only be varied in the following scenarios:
- the trust deed includes an appropriate power of variation;
- all beneficiaries are adults with legal capacity and unanimously agree to the change; or
- the trustee obtains an order from the Supreme Court of Queensland to extend the trust’s perpetuity period.
Any amendments to extend the perpetuity period must also be made before the trust’s current perpetuity period has been reached.
Be aware that if the trust owns assets in any other State or Territory, complications may arise as not all State or Territory laws align with the new Queensland changes.
It is important to review the terms of your trust deed and its asset portfolio before any changes are made.
What Should You Do Now?
If you are considering extending the life of your trust, we recommend contacting one of the Estate Planning Team at MDL.
Our experienced lawyers can:
- review your existing trust deed,
- advise whether the perpetuity period can be amended, and
- prepare the necessary documents.
To speak to a team member about the new changes or trusts generally, please call our office on 07 3370 5100 or email info@mdl.com.au.
The comments, information and opinions in this document are of a general nature and are not intended to be specific advice as they are based on McCarthy Durie Lawyers interpretation of the law as at the date this document was prepared. It is always possible the law and position may change as a result of cases, rulings, decisions or legislations. We recommend you obtain specific advice in relation to your own individual circumstances and the implications before considering any of the above or implementing these strategies.
