Unit Trust

A unit trust is a specific type of trust which divides the beneficial ownership of the trust property into a number of units. The number of units you hold determines your share of the income and voting power.

A unit trust differs from a discretionary/family trust in that the trust property in a unit trust is held upon trust absolutely for the unit holders (i.e. generally, the trustee does not have discretion regarding the distribution of capital or income among the unit holders unless units are of different classes with different rights attached to each class).

In this Law Central Unit Trust:

1. Only one class of units are created (called “ordinary” units) and issued to unit holders;
2. Every unit holder is given the same rights and is under the same obligations; and
3. The proportion of income and capital distributions that each unit holder is entitled to, is equal to the number of units they hold as a proportion of the total units in the unit trust.

If you wish to issue additional classes of units or reclassify units in this unit trust after it has been established, then you should first obtain legal advice.

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Hold Land in NSW
• Hints for Unit Trust

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Hold Land in NSW

• Hints for Unit Trust

  The hints for the Unit Trust are currently under review.

  This hint is provided by Law Central Legal.

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This document has been prepared by the law practice Law Central Legal

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