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Unit Trusts

A unit trust is a trust in which the trust property is divided into a number of defined shares called units. The beneficiaries subscribe for the units in the same way as shareholders in a company subscribe for shares. In an ordinary unit trust a beneficiary is entitled to the income and capital of the trust in proportion to the number of units held. Unlike a discretionary trust, the trustee generally has no discrection and distributions are usually in proportion to units held. A beneficiary of a unit trust has a proprietary interest in all the property of the trust.

The provisions of each trust are drawn by our retained solicitors who give consideration to contemporary requirements and developments.

Each deed provides for a class of units and allows a wide range of potential commercial transactions and also includes comprehensive pre-emptive provisions concerning the transmission of units on death, bankruptcy or insanity of a unit holder.

Click on the PDF form below to download an order form for a Unit Trust.

You Can Download the latest version of Acrobat Reader from the link below.


On Ordering A Unit Trust You Receive
  • One unbound copy and two bound copies of the trust deed for execution and stamping.
  • The appropriate stamp duty form as required by the Commissioner of Stamp Duties.
  • Letters of full explanation of the nature of the trust and the general responsibilities of the trustee including a short list of suggested things to do on acquisition.
  • A draft minute detailing the establishment of the trust.

For the Professional Advisor

Attributes of the Unit Trust Deed
  • While the current structure of the trust provides for only one class of units, the rights and entitlements can easily be amended.
  • The ability to undertake a wide range of potential commercial transactions is given to the trustee. The trustee's powers and duties incorporate all the requirements of the major financial institutions incluing power to lease property and equipment, purchase securities, develop and maintain properties and give guarantees. While there is a very simple procedure to amend the deed to incorporate any specific power, the powers given to the trustee have proven to be sufficiently widely drawn to cover all normal commerical dealings.
  • The trust is structured to provide for a term of eighty (80) years from establishment although provision is made for the trustee to terminate the trust at an earlier date should it be so desired.
  • There is a comprehensive index setting out all of the trustee's powers and duties.
  • There are comprehensive schedules which include pro forma unit certificates, transfer forms, sales notices, proxy forms and application for further units.
  • Provision exists to make interim distributions of either capital or income to the registered holders during each particular income year with any amount undistributed on the last day of that year to be distributed to the registered holders in proportion to the number of units held by them at that date.
  • The deed includes comprehensive pre-emptive provisions concerning the transfer or sale of units in the trust as well as comprehensive provisions concerning the transmission of units on the death, bankruptcy or insanity of a unit holder.
  • The trustee's right of indemnity against the registered holders, in respect of liability incurred by the trustee under the provisions of the deed, is limited to the assets of the trust itself.