Yes, a family trust can own property in Australia. Under Australian law, a family trust (most commonly a discretionary trust) may legally hold real estate, with the trustee registered on title as the legal owner while the beneficiaries hold the equitable interest. This arrangement is a widely used mechanism for asset protection, succession planning, and intergenerational wealth management.
A family trust can legally hold property, but the property is not registered in the name of the beneficiaries. Instead, the trustee is recorded as the legal owner on the property title, while the beneficiaries hold an equitable interest under the trust deed. The trustee, whether an individual or a corporate trustee, has fiduciary duties to manage the property in accordance with the deed and for the benefit of the beneficiaries.
To place property into a family trust, the title must be transferred to the trustee, which involves preparing and lodging the transfer with the relevant state or territory land registry, paying applicable stamp duty, and ensuring compliance with capital gains tax rules. Once transferred, the property becomes a trust asset and is managed strictly under the trust’s legal framework.
Holding property through a family trust provides several strategic advantages:
Family trust ownership also comes with notable drawbacks:
A family trust is not limited to a single type of real estate. Subject to its deed, a trust may hold:
The trust deed must expressly authorise such acquisitions to avoid disputes or breaches of duty.
From a taxation perspective, trustees play a central role in directing income. Rental income and capital gains are taxed in the hands of beneficiaries to whom they are distributed, subject to tax law constraints. While this flexibility can provide significant benefits, there are important caveats:
Because these tax implications are complex, families typically require both legal and accounting advice when structuring trust property holdings.
Trustees are the legal owners on title and therefore assume full responsibility for the administration of trust property. This includes meeting legal obligations under tenancy law, paying rates and outgoings, and making decisions about sale or refinancing. In practice, professional trustees (often corporate entities) are preferred in order to reduce risk and ensure compliance.
A family trust may dispose of property in the same way as any other owner, provided the trust deed authorises such a transaction and the decision is made in the interests of beneficiaries. Sale proceeds remain trust assets and are either reinvested or distributed in accordance with the deed and tax law.
Family trusts are frequently used for estate planning because property held in trust is not considered part of a deceased person’s estate. This avoids probate and ensures continuity of ownership, while also providing mechanisms to control how future generations benefit from the property. For many families, this is the most compelling reason to place real estate within a trust structure. When exploring trust-based estate strategies, it is equally important to understand and find a good family law lawyer, as professional advice ensures compliance with both trust law and property law requirements.
To address common legal questions, the following clarifications are provided:
Yes. A properly established trust, with a trustee recorded on title, may lawfully own real property in Australia.
This is done via a transfer deed, updating the land title, and accounting for stamp duty and capital gains tax obligations.
Administrative burdens, compliance costs, and restricted tax deductions are the primary disadvantages.
Yes, subject to the trust deed. Sale proceeds remain within the trust and must be applied for the benefit of beneficiaries.
The trustee, whether an individual or a corporate trustee, holds legal title and manages the property subject to fiduciary obligations.
The question “Can a family trust own property?” is not only a legal one but also a strategic one. Family trusts can and do hold property under Australian law, but the decision to adopt this structure should be guided by careful legal drafting, compliance awareness, and professional advice. Platforms like LegalFinda connect families with experienced trust and property lawyers who can ensure that the arrangement is structured correctly. When properly established, a family trust offers long-term security, intergenerational wealth management, and tax flexibility — making it one of the most enduring tools in property and estate planning.