Estate planning has suddenly become one of the hottest topics in Australian property. The 2026–27 Federal Budget included a proposed 30 per cent minimum tax rate for discretionary trust income from 2028–29, and while the Government says the measure is about fairness, many families are now asking what it means for wills, inherited property and testamentary trust structures. It is not technically a tax on death itself, but it may change how income from inherited assets is taxed once those assets are held within certain discretionary trust arrangements.
For years, testamentary discretionary trusts have been popular in wills because they can provide flexibility, asset protection and tax planning benefits. A family home, an investment property in Blacktown, or a portfolio built over decades can pass into a structure that allows income to be managed for children, grandchildren or a surviving spouse. Under the proposed rules, however, estate planning professionals have warned that some of the traditional tax advantages may be reduced, particularly where the trust is discretionary and established after the Budget announcement.
| Estate planning structure | Main purpose | Proposed tax concern | Practical property issue |
| Testamentary discretionary trust | Flexibility, asset protection and family control | May face the 30% minimum tax on some income from 1 July 2028 | Rental income from inherited property may need review |
| Fixed testamentary trust | More certainty over beneficiary interests | Expected to be outside the discretionary trust minimum tax | Less flexibility if family circumstances change |
| Deceased estate | Administration of assets after death | Government materials indicate deceased estates are excluded | Title transfers still need careful handling |
| Special disability trust | Support for vulnerable beneficiaries | Listed as an excluded structure | Must be set up correctly for eligibility |
| Direct inheritance | Simple transfer to beneficiaries | No trust-level income management | Less protection from divorce, creditors or poor decisions |
The real tension is not just tax — it is control. Discretionary testamentary trusts are often used to protect inheritances from relationship breakdowns, business failure, creditors and family disputes. A fixed structure may appear simpler from a tax perspective, but it can reduce flexibility. As a result, families may soon face a sharper choice: retain greater control and asset protection, or simplify the structure and potentially reduce tax complexity.
For property owners, this is not an abstract accounting issue. If your estate includes rental properties, development land, commercial premises or family wealth tied to real property, your will is directly connected to future sales, transfers and settlements. A poorly reviewed structure can create complications when executors later need to sell, refinance, distribute assets or transfer title to beneficiaries. In a market where family homes across The Hills, Parramatta, Hornsby, Hawkesbury and Western Sydney continue to hold significant value, succession planning has never been more important.
There is also a practical sales consideration that families should not overlook. If an executor needs to sell an inherited property, buyers will expect clear authority, a clean title, properly issued probate or letters of administration, and certainty about who has the legal power to sign the contract. Delays in estate administration can weaken a sales campaign, discourage prospective purchasers and complicate settlement. Flash Conveyancing helps families focus on the practical issues: who owns the property, who has authority to deal with it, and what steps must be completed before a contract can safely proceed.
Flash Conveyancing Advice
Don’t wait until grief, probate and a pending sale are all happening at once. Review your will, trust structure and property ownership arrangements with appropriately qualified legal and financial advisers now. A strong estate plan should protect your family, preserve flexibility and help ensure future property transfers proceed as smoothly as possible.
Julian and Renee from Flash Conveyancing understand that property ownership does not end with a sale or purchase — it often forms part of a family’s long-term legacy. Working with clients across NSW, they assist with the property transfer and settlement aspects that arise during estate administration, helping ensure titles, contracts and ownership records are handled correctly when assets pass between generations. With extensive experience across council areas including Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby and Parramatta, they provide practical support for property matters throughout Acacia Gardens, Angus, Arndell Park, Blacktown, Colebee, Glendenning, Glenwood, Grantham Farm, Kellyville Ridge, Kings Langley, Marsden Park, Melonba, Oakhurst, Parklea, Quakers Hill, Riverstone, Schofields, Seven Hills, Stanhope Gardens, Tallawong, The Ponds, Baulkham Hills, Beaumont Hills, Bella Vista, Castle Hill, Kellyville, Kenthurst, North Rocks, Northmead, Rouse Hill, Vineyard, Windsor, Annangrove, Box Hill, Cattai, Dural, Gables, Galston, Glenhaven, Glenorie, Maraylya, Middle Dural, Nelson, North Kellyville, Norwest and Winston Hills.