Firstly, what is a trust?
A trust is a legal structure where assets are held by a trustee on behalf of beneficiaries. In simple terms, the trustee manages and controls the assets, but the benefit of those assets—such as income or capital growth—flows through to the beneficiaries.
Trusts are commonly used by business owners, families, and investors as part of their financial strategy. At q4 financial, we often see clients use trusts because they:
- Provide flexibility in distributing income – Trustees can decide how to distribute income each year, which can help optimise tax outcomes.
- Protect assets – Trusts can safeguard family wealth against risks such as business liabilities or liability claims.
- Support succession planning – Trusts allow for smoother transfer of wealth across generations.
- Enable estate planning strategies – Testamentary trusts, for example, give families greater control over how inheritances are managed.
In short, trusts are a powerful tool for both wealth creation and wealth protection, which is why they are frequently recommended by accountants and financial planners.
The big change: 125-Year trust lifespan
Until recently, trusts in Queensland could only run for up to 80 years. That’s now changed. As of 1 August 2025, new legislation allows trusts governed under Queensland law to last for up to 125 years.
This reform opens new opportunities for long-term planning—particularly for families and businesses wanting to preserve wealth across generations.
Why this matters for you
The extension has three key benefits:
- More time to build and protect wealth
Families can now use trusts to support not just children and grandchildren, but potentially great-grandchildren too. - Tax and estate planning advantages
Extending the life of a trust means you may be able to defer tax events (such as capital gains) that would otherwise occur when a trust “vests” or ends. - Greater flexibility for business owners
For those running businesses within a trust structure, the extended timeline provides more options for succession and exit planning
What should trustees and business owners do?
If you already have a trust in place, it’s worth checking how this change affects you. Steps to consider:
- Review your trust deed to see what vesting date is currently set.
- Check if the deed allows variation so the trust’s lifespan can be extended.
- Seek professional advice—changes to trust deeds can carry tax or legal implications.
- Plan ahead—particularly if your trust is approaching its vesting date.
Final thoughts
This change represents one of the most significant updates to trust law in Queensland in decades. For business owners and families, it provides a valuable opportunity to strengthen asset protection and intergenerational wealth planning.
It’s imperative to seek the expert advice of a lawyer, accountant, and financial planner before making any changes. This ensures your trust continues to serve its intended purpose and that your family’s financial and legal needs are met—both now and well into the future.
At q4 financial, we work closely with clients to review existing structures, identify opportunities, and ensure their structures are aligned with long-term goals. If you’d like to discuss how this new legislation might apply to your situation, our team is here to help.
[Before acting on any General Advice, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) for that product before making any decisions.]
