The commencement of the Property Law Act 2023 (Qld) (“the Act”) on 1 August 2025 represented a meaningful modernisation of property and trust law in Queensland, particularly in relation to its treatment of the rule against perpetuities.
Perpetuity Period
Historically, the perpetuity period has been regarded as one of the more complex doctrines of equity with the rule imposing strict time limitations on the vesting of interests in assets. The Act, most notably for the purposes of this article, provided for an extension of the perpetuity period which permits the duration of a trust to be a maximum of 125 years.
Prior to the reforms brought about by the Act, Queensland adhered to the common law rule against perpetuities, under which interests in a trust were required to vest within a period measured by “lives in being plus 21 years”, or, pursuant to statutory modification, within a fixed period of 80 years. This framework often created practical difficulties, particularly for discretionary trusts used in estate planning where the requirement that a trust vests within 80 years often disrupted long-term asset management strategies and brought about potential adverse tax consequences.
Fixed Statutory Perpetuity
The commencement of the Act fundamentally altered this position in Queensland by replacing the previous rule against perpetuities and introducing a new fixed statutory perpetuity period of 125 years. Under the Act, trust interests must vest within 125 years from the date of their creation, unless a shorter period is specified in the trust instrument. As such, the uncertainty and technicality of life-based calculations is replaced with a clear time limit. It is important to note that the “wait and see” rule has been retained, allowing for a flexible and practical determination of Queensland trust law and the validity of trust distributions.
The amendments to the perpetuity period made by the Act will affect testamentary trusts, family trusts and other trust structures being established after 1 August 2025. It is noted that the extended perpetuity period may be applied to existing trusts, subject to Court discretion.
Property Law Act 2023
The Act introduces a significant and largely beneficial reform to the law of perpetuities in Queensland, by replacing a complex common law doctrine with a clear 125-year statutory period. If you wish to discuss the effects the Act may have on an existing trust in which you hold an interest or are interested in discussing the establishment of one, please do not hesitate to contact one of our experienced estate planning lawyers.
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From a practical estate planning perspective, this reform offers greater flexibility in structuring intergenerational wealth transfer and long-term family trust arrangements. However, it also places increased importance on careful drafting, particularly where clients may not intend for trusts to operate for the full statutory period. Consideration should be given to whether a shorter perpetuity period is more appropriate in the circumstances, as well as how the extended timeframe may interact with trustee discretion, beneficiary succession, and changing family dynamics over time.
Advisers should also be mindful that while the longer period may assist with asset preservation strategies, it may also prolong administrative obligations and complicate future variations or restructuring. Accordingly, regular review of trust deeds remains essential to ensure alignment with evolving legal and personal objectives.
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de Groots wills and estate lawyers, which was established in 1986, specialises in wills and estate planning along with estate administration and estate litigation.
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