From $242 (inc GST) for email version
Unit Trusts differ from Discretionary Trusts in that the beneficiaries are defined via ownership of Units in the Trust rather than by family relationships. These Units are much the same in concept to Company Shares and represent a direct portion of the value of the Assets held by the Trust.
A Unit Trust is often used for business arrangements where, for example, a group of people or entities are investing in a large asset (or assets) and want to apportion the value and income from these assets across the group. Units can be transferred between individuals (at an agreed value) and new units issued where the required proportion of Unit Holders approve.
Hybrid Trust Deed
Combines a Multiclass Unit Trust with a Discretionary Trust component to allow a Trustee to distribute to family members of those nominated in addition to Unit Class related distributions.
- A4 binder (white or grey)
- 4 (3 bound, 1 loose leaf) copies of the Trust Deed
- Instruction sheet
- Stamping instructions
- Statutory Declaration
- Notes for the assistance of the Trustee
- Minute page if Corporate Trustee
- Register of Unit Holders
- Application for Units
- Unit Certificate
PDF email delivery
Full Service Courier delivery
How long does it take to establish a Hybrid Trust Deed?
For email delivery orders, the Trust Deed and related documentation will be emailed to you within 15 minutes of placing your order. If you have ordered a Hybrid Trust package, we need to register the Trustee company before establishing the Trust which means delivery may take up to a hour for both the company register and the Trust deed.
We are able to deliver our full service couriered product to the Sydney metropolitan area within about 4 hours of receiving an order. Orders received before 12 midday are usually delivered the same day. Documents being sent to Brisbane and Melbourne will be sent by overnight courier for next day delivery (order must be received by 4pm for delivery the next day) and within a couple of days to Perth and regional areas.
Duty Stamping of Trust Deeds
Please note that the Stamp Duty cost is not included in the listed price for the Unit Trust Deed. Trust Deeds established in either NSW or Victoria need to be duty stamped upon execution.
NSW The Office of State Revenue fees are $500 for the original trust deed and $10 for subsequent duplicates on top of the above trust deed prices. A service fee of $77 including GST is applicable.
Victoria The State Revenue Office fees are $200, regardless of the number of duplicates, on top of the above trust deed prices. A service fee of $77 including GST is applicable.
What is a Standard Unit Trust?
A Standard Unit Trust is a Trust divided into units all of the same class that gives the Unit holders equal rights to vote and share in the distribution of income and capital in proportion to the number of Units held.
A Unit Trust does not have a Settlor.
What is a Multi-Class Unit Trust?
This form of Trust is a Trust with different classes of units each having different rights to share in the distribution of capital and income. Some units may have a right to vote and others may not, similar to different Shares in a company structure. Our Multi Class Unit Trust provides 13 different classes of Unit each with differing rights.
What is a Fixed Unit Trust for NSW Land Tax purposes?
Revenue NSW’s definition of a Fixed Trust states that it is a trust where the beneficiaries (or Unit Holders) are considered to be owners of the land at the taxing date of midnight on 31 December prior to the tax year.
This type of Trust applies only to NSW. It is a standard Unit Trust whereby the unit holders are entitled to a fixed proportion of income and capital distribution from the Trust. Revenue NSW stipulates that the Deed must meet the following criteria:
- The unit holders are entitled to all income of the Trust (after the payment of normal expenses)
- The unit holders are presently entitled to the capital of the Trust and may require the Trustee to wind up the Trust and distribute the property or the net proceeds of the Trust
- Unit Holder entitlements cannot be removed, restricted or otherwise affected by the exercise of any discretion or by failure to exercise any discretion.
- There must only be one class of units issued and the proportion of trust capital to which a unit holder is entitled on winding up or surrendering of units must be fixed and must be the same as the proportion of income of the trust to which the unit holder is entitled.
If a Trust meets the requirements of section 3A of the Land Tax Management Act, then the Trust will not, for Land Tax purposes, be deemed a Specialty Trust and will be entitled to the benefit of the Land Tax threshold exemptions available in NSW.
What is a Hybrid Unit Trust?
A Hybrid Unit Trust combines a Multiclass Unit Trust with a Discretionary Trust component to allow a Trustee to distribute to the lineal and lateral relations of the Unit Holders in addition to Unit Class related distributions.
How is a Trustee Changed?
The Patricia Holdings Unit Trust deed provides that 62% of the Unit Holders have the power to remove and appoint a Trustee (clause 34). This percentage is a purely arbitrary figure and could be any other percentage as long as it is a majority percentage.
How is a new Trustee added?
To add a new Trustee is relatively simple. The appointment can be made verbally or in writing; preferably in writing. The appointment is made by a 62% majority vote of the Unit Holders. Generally the appointment is in the form of a Trust deed because a Trust deed is a more legally binding document. The additional Trustee must when accepting the appointment undertake to carry out the duties of Trustee and discharge the obligations contained in the Trust deed and at law.
How do you remove a Unit Holder?
In a Unit Trust a Unit Holder cannot be removed.
A Unit Holder can sell his or her units back to the Trustee (but only if the Trustee agrees to repurchase the units) or sell them to the other Unit Holders. If no Unit Holder wants to purchase the Units then the units can be sold on the open market if a purchaser can be found.
What is the minimum number of units one can have in a Unit Trust?
If the Trust deed is a Unit Trust deed then the nature of the Trust deed assumes that the Trust deed is divided into a number of units. There can be as few as one unit in a Unit Trust deed though, to avoid the possibility of a Unit Trust deed being deemed to be a Fixed Trust deed, there should be at least two units.
How is the name of a Unit Trust changed?
Patricia Holdings can help change the name of your Trust. The Trustee elects to change the name of the Trust and then confirms that election in writing. A Trustee must ensure that if a Trust changes its name that every person who has business dealings with the Trust and every Nominated Beneficiary of the Trust are notified of the change of name. We can provide all the paperwork required for $143 delivered as a PDF or $176 for printed and couriered documents.
Does a Unit Trust have to have a Trustee?
Yes, every Trust must have a Trustee. This is because the law requires that for a Trust to exist there must firstly be some Trust property and secondly, it is the Trustee (or Trustees) who hold the Trust property on Trust for a Beneficiary or Beneficiaries (there must be a separation between the legal and equitable ownership). A Trust is not considered a legal entity.
How is the State of Jurisdiction of a Unit Trust Changed?
The State of Jurisdiction of a Trust is determined by where the Trust conducts its business. As soon as a Trust (the Trust is made up of the Trust assets) is moved from one State to the other then the Jurisdiction of the Trust moves to the new State. Trustees must be aware that if a Trust is moved from one State there may be a requirement for Stamp Duty to be paid in the new State.
How is a Unit Trust wound up?
A Trustee winds up a Trust by:
- making a Declaration (in writing) that the Trust is to vest (that is the Trust ends and the Trust assets be distributed to the Unit Holders);
- collecting in all of the Trust assets and converting them into cash (unless the Trustee proposes to make an in specie distribution);
- all debts of the Trust must be paid and all tax must be paid;
- The assets (or cash) are then distributed amongst the Unit Holders according to the Unit Holdings in the Unit Trust Deed;
- notice is then given to the Taxation Department that the Trust has ceased to exist.
If a Unit Holder in a Unit Trust is a Trust, who is to be named as the Unit Holder?
The Trustee of the Unit Holding Trust “as trustee for” the Trust
Who can be the Trustee of a Unit Trust?
Any individual, company, or incorporated association can be a Trustee provided that the person or directors are not bankrupt, minors, or disqualified persons.
Must the Trustee have an Australian address?
The Trustee must have an Australian address as they have Governance responsibility for the Trust and therefore need to be accessible to the Legal Jurisdiction under which they operate. The state or territory of Jurisdiction can be nominated, but should the Trust be subject to legal proceedings, this is only one of the factors that will be taken into account when determining the appropriate Jurisdiction for the action.
How long does a Unit Trust last?
A Trust must vest (be wound up and its assets distributed) within 80 years of being set up (except in South Australia where the Law relating to perpetuities does not apply). The Patricia Holdings Trust deed provides for the Trust to have a maximum life of 79 years. A Trust can be wound up at any time within the 79 years.
How to Order
Order by fax/email
- Download Order Form – Unit Trust Deed.pdf