Unit Trust - Hybrid (ABN)
There are many types of Hybrid Trust, offering unit classes that have different entitlements to one, other or both of capital and income. Unit classes may be fixed by reference to the registered unitholder or discretionary whereby the Trustee may distribute entitlements to not only the unitholder but also additional beneficiaries determined by reference to that unitholder (similar to the General Beneficiary definitions found in a discretionary trust).
Our standard hybrid trust has these features:
- the trust is established by the settlor transferring the settled sum to the trustee in consideration for the issue of the initial units to the initial unit holders;
- units are all fully paid $1 units. There are no partly paid units;
- additional units may be purchased later, the cost of which is to be determined via a formula in the Deed;
- the trustee may make distributions of either or both income and capital;
- if the trustee makes a distribution, then that distribution must be to each unitholder (and by virtue of the definition of unit class, the additional beneficiaries determined by reference to that unitholder) in proportion to the number of units registered against the unitholders name;
- the trustee has a discretion to distribute to one or more beneficiaries within a unitholder class to the exclusion of other potential beneficiaries (again being similar to a discretionary trust);
- the trustee can also make distributions that are not in proportion to the number of units registered, but to do this, the trustee must follow the procedure (and the power of veto) set out in the Deed;
- units may be transferred under the Deed providing certain procedures are followed;
- various other clauses dealing with a range of matters that are found in each of our legal agreements.
If you require any amendments to the document after it has been returned to you, one of our lawyers can make those amendments however the cost for this work is
not included in the price of this document. Please contact us on info@ampalmer.com.au for further assistance.