From 1 August 2025, Queensland’s trust law framework changes significantly with extended lifespans for trusts coming into effect.
The Property Law Act 2023 (Qld) extends the maximum perpetuity period for trusts in Queensland. New trusts commencing after 1 August 2025 will now have a lifespan of 125 years, unless a shorter period is specified in the trust deed. This change affects all Queensland trusts, including family discretionary trusts, unit trusts and testamentary trusts.
This extended period brings Queensland into alignment with more modern asset planning practices and offers greater flexibility for long-term family, business, and succession planning.
Some key points for trustees to note:
- The 125-year period applies only if the trust is governed by Queensland law, which typically requires a connection to Queensland (such as a Queensland-based trustee, assets or beneficiaries).
- The change applies to new trusts established from 1 August 2025.
- Existing trusts with a fixed shorter vesting date may be varied to extend the trust lifespan, providing that there is a variation power in the trust deed. This is something that will need to be carefully reviewed and considered as most trust deeds have specific clauses which govern when the trust is to vest (or end) and which exclude any amendments to that date.
- For some trusts, amending the perpetuity period may trigger taxation or stamp duty consequences, so specialist advice is recommended before adopting the 125-year vesting period, especially for older or more complex trusts.
The practical result of the extended perpetuity period is enhanced ability for:
- families and businesses to retain assets in trusts for longer;
- inheritances passing by way of testamentary trusts to be managed across additional generations (increasing the impact of the legacy); and
- more effective tax planning opportunities.
Trustees and their advisers should promptly review their trust deeds to identify and implement any changes necessary to benefit from the reform. Get in contact with our team if you would like advice about whether you can extend the life of your trust.
