Buying Property in a Trust Australia: What You Need to Know

By Guest Blogger, Malisa Howard, Principal Solicitor, Jaidie Law

Next Level Wealth 

Thinking about buying property in a trust in Australia? Whether it’s a discretionary family trust or a unit trust arrangement, it’s a structure we often see on the legal title, but it’s not always the right fit for everyone. 

At Jaide Law, we don’t provide trust setup or structuring advice – that’s a job for your accountant or financial adviser. But when it comes to helping you buy or sell property through a trust, we’ve got your back.

Here’s what you need to know from a property law perspective when weighing up whether to buy in your own name or through a trust.

1. What Does It Mean to Buy Property in a Trust?

From a conveyancing and title standpoint, buying through a trust means that the trustee – either a person or a company – is listed on the property title as the legal owner. The trustee doesn’t own the property personally but holds it on behalf of the trust’s beneficiaries, in accordance with a formal trust deed.

We often act for clients who are trustees (either individually or through a corporate trustee), ensuring the contract and transfer documents correctly reflect that the property is held in trust.

2. Legal Title Matters – Get It Right From the Start

If you're using a trust to purchase property, the contract and title documents must reflect the trust arrangement correctly. That means including the full name of the trustee, the trust name, and often the ABN (if applicable).

Mistakes in naming the purchaser can cause delays, unnecessary legal costs, or even stamp duty complications. We regularly review contracts pre-signing to ensure trust details are properly documented and can help liaise with your accountant or adviser if clarification is needed.

3. Asset Protection – A Reason Trusts Are Common

Many buyers are advised by their accountants to use a trust for asset protection reasons. This is especially common for business owners, professionals, or families managing shared investments.

From a legal standpoint, the benefit of this structure is that you personally don’t appear on title, which may offer a layer of protection in the event of a personal liability claim. However, we always emphasise that the decision to use a trust should be made with your accountant or adviser upfront – not after a contract is signed.

4. Land Tax and Trusts – Check With Your Accountant First

One of the most important things to consider is land tax liability – particularly in NSW. Some types of trusts (like discretionary trusts) don’t qualify for the land tax threshold, meaning land tax is payable from the first dollar of land value.

As property lawyers, we don’t provide tax advice – but we strongly recommend that you speak to your accountant about land tax implications before you exchange contracts.

We regularly act for clients who already have trust structures in place and can make sure that the trust is correctly identified in all property documents. But whether it’s the right structure for your land tax position? That’s for your financial team to advise on.

5. Trusts and Property Sales – Watch for Title, GST and Authority Issues

If you're selling a property from a trust, there are a few extra steps to keep in mind:

• Is the trustee still valid and appointed? We sometimes find that trust deeds haven’t been updated, or the trustee company has been deregistered.
• Does the sale trigger GST? If the trust is registered for GST, the contract may need special wording (such as going concern clauses). We’ll coordinate with your accountant to make sure GST is dealt with correctly.
• Who has authority to sign? It’s essential that the right person signs on behalf of the trustee entity – we’ll check this as part of our contract preparation or review process.

6. Case Study: Land Tax Implications

We recently acted for a family trust selling a residential investment property. They had initially decided to purchase through a trust for asset protection reasons, although their accountant at the time of the purchase had not let them know of the land tax implications – resulting in a $40k land tax bill each year (ouch!)

The moral? If you’re buying through a trust, involve your lawyer early and make sure your accountant has advised on structure before you sign anything.

7. When Might Personal Ownership Be Simpler?

Many clients choose to buy property in their own name – especially when:

• It’s their primary place of residence
• They want to access stamp duty concessions
• They are not investing through a structured family or unit trust
• They want to keep loan approvals and paperwork straightforward

Personal ownership is legally simpler – and for many buyers, entirely appropriate. If you’re unsure, your accountant can help you compare structures from a tax and strategic viewpoint.

Key Takeaways

• If you’re considering using a trust to buy or sell property, make sure you get accounting and structuring advice first
• As your property lawyers, we can ensure the trust is correctly identified in contracts and on title
• Trust purchases often require additional review and care – especially around signing authorities, land tax, and GST
• Get your lawyer involved early to avoid mistakes, delays or extra duty down the line

If you’ve got questions about a property matter, we’d love to help. Feel free to reach out to us at contact@jaidelaw.com.au - we’d love to help you make your next transaction a smart and stress-free one.

Disclaimer – We know most of you get this, but just to be clear, the information above is general and doesn't consider your unique situation. Please don't rely on it as a substitute for professional advice. We strongly encourage you to seek appropriate guidance for your specific needs.

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