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Unit Trusts and Fixed Trusts
A Unit Trust and a Fixed Trust are generally used to conduct investment or trading activities between “unrelated” parties. The structure of a Unit Trust and Fixed Trust is similar to a Company. In a Company members hold shares in proportion to their investment in the Company. Similarly, in Unit Trusts and Fixed Trusts, the beneficial interest in the Trust property is divided into Units and beneficiaries (Unit holders) hold a number of Units according to their investment in the Trust. Difference between a Family Trust and a Unit Trust or Fixed Trust The essential difference between a Family Trust and a Unit Trust or Fixed Trust is that the beneficiaries of a Family Trust do not have a fixed interest or entitlement to the assets of the Trust whereas in a Unit Trust or Fixed Trust the Unit holders have an entitlement to the capital/income of the Trust in fixed proportion to the number of Units held (depending on the rights attached to each class of Units). Types of Unit Trust Deeds There are two main types of Unit Trusts, those Deeds which confer a specific interest in the Unit Trust assets and the Unit Trust income to the beneficiaries (called a present entitlement) and which confer a right on the part of the beneficiaries to terminate the Unit Trust. Unit Trust Deeds where the beneficiaries have not conferred a specific interest in the Unit Trust assets, or a right to terminate the Unit Trust, are considered to have no specific present entitlement to the capital, although there may be classes of Units issued with fixed rights to the net income of the Unit Trust. Benefits of Reckon Docs Unit Trust and Fixed Trusts Shelco Unit Trusts and Fixed Trusts are provided by Reckon Docs and are:
For more information please contact Reckon Docs corporate services team on 1300 139 001 or e-mail to: corporateservices@reckon.com.au. |
