02/09/2026
A family trust does not automatically put the farm out of reach.
In May the Full Court handed down its decision in Caldwell and Caldwell. The case involved three discretionary family trusts set up by the husband's father, holding wealth built through a family business across four generations. On appeal, the Court found the assets of those trusts were property of the husband for the purposes of a property settlement.
What decided it was control.
πΎ He could remove the couple's adult sons as appointors of the trusts
πΎ He held voting rights in the trustee companies
πΎ He was a beneficiary the trustee was able to distribute to
πΎ He had never taken a distribution, and had never used those powers
That last point is the one worth sitting with. Having the power was enough. He did not have to use it.
For farming families the lesson is not that trusts fail. It is that the control provisions in the deed carry more weight than most people realise. Who holds the appointor role. Who can remove a trustee. Who owns the shares in the trustee company. Those clauses decide how the structure holds up when it is tested.
If the farm sits in a trust and no one has read the deed in years, that is worth a look. Book a time to go through it with our team: https://lawtap.com/au/law-firms/lovett-green-solicitors