Vesting Date

The vesting date is the day a trust comes to an end and its property must be distributed absolutely to the beneficiaries, ending the trustee's discretion. Most trusts cannot last forever: in NSW, Victoria, WA, Tasmania, the ACT and the NT the maximum life is generally 80 years under the rule against perpetuities. The position differs in two states — Queensland now allows up to 125 years for trusts commencing on or after 1 August 2025, and South Australia has effectively abolished the perpetuity limit altogether. The vesting date is set in the trust deed or, for a testamentary trust, in the Will.

Vesting can trigger capital gains tax and stamp duty, so the date should be chosen deliberately and reviewed well before it arrives. Example: the trustee of an 80-year NSW family trust nearing its vesting date takes advice on whether the deed allows the vesting date to be brought forward or, where permitted, extended. Because the perpetuity period varies by state — 80 years in most jurisdictions, 125 years in Queensland, and no fixed limit in South Australia — the chosen date should match the state whose law governs the trust.