Actions in Respect of Trusts

Nature of action

Time Limit Period

Legislation

Provision

Action by beneficiary to recover trust property (or in respect of breach of trust).

The action must be brought within 6 years from the date on which the right of action accrued (if no other period of limitation is prescribed by the Act). This also applies with respect to constructive trusts.

In respect of fraud or fraudulent breach of trust, there is no limitation period in Queensland.

s 5 and 27 Limitation of Actions Act 1974 (Qld)

s. 5 Trusts Act 1973 (Qld)

Section 27(1) provides that a period of limitation prescribed by the Act will not apply to an action by a beneficiary under trust for fraud or fraudulent breach of trust or an action to recover trust property from a trustee.

Section 27(2) limits an action by a beneficiary to recover trust property or in respect of breach of trust to 6 years from the date on which the right of action accrued. Section 5 of the Limitation of Actions Act 1974 (Qld) given Trust and Trustee provided for in the Trusts Act. That Act extends the definition of Trust and Trustee to include constructive trusts and constructive trustees.

Section 27(2A):

(2A)Notwithstanding subsection (2), the right of action shall be deemed not to have accrued to a beneficiary entitled to a future interest in the trust property until the interest fell into possession.