Unit Trusts are a particular type of investment structure commonly used to hold passive assets owned by partners or more than one individual, or are used special purpose vehicles to hold trading assets. Assets are apportioned in a unit trust according to the number of units held by the unit holders. Unit holders obtain a beneficial ownership over the units they hold in the trust. 

Our expert trust lawyers work closely with clients through the key steps involved in establishing unit trusts and provide practical and technical advice on the main considerations relevant to the unit trust structure.

We will help clients to prepare unit trust deeds and establish unit trust structures which reflect their commercial and legal objectives and cover the following relating to the unit trust:

  • Purpose
  • Vesting date
  • Rights and obligations of the trustee
  • Trustee powers
  • Rights and entitlements of the unit holders, specifically in relation to selling units
  • Process of closing the unit trust

Unlike a discretionary trust, the trustee of a unit trust does not have any discretion to decide the distribution of the trust assets and income to beneficiaries. Similar to a shareholder of a company, the distribution of income and capital of a unit trust is determined by the units held by the unitholders.

For tax purposes, a unit trust structure may be the appropriate investment vehicle for the following investments:

  • Running your business
  • Joint ventures
  • Business partnerships
  • Property investment and development

We assist  individuals and businesses determine the appropriate unit trust structure best fitting to their investment or circumstances to avoid being subject to any unforeseen liability or issues down the track.

Talk to one of our expert lawyers today.