Fixed Trusts

Fixed trusts are trusts where the proportion of distribution of income to the beneficiaries is fixed. You can find out more on trust structures in general here. A common fixed trust is a unit trust (but note not all unit trusts are fixed trusts).

Advantages of a fixed trust may include:

• As the beneficiaries of a fixed trust have fixed interests in the income and or capital of the trust property, they can enforce the administration and the distribution of the property of the trust.

Disadvantages of a fixed trust may include:

• The trustee does not have the discretion on how to distribute income (such as in a discretionary trust) and in this respect is less flexible than a discretionary trust.

Our commercial lawyers will assist you in deciding whether a fixed trust is the right structure for you. If you would like to speak with one of our commercial lawyers, please contact us on (02) 9521 2222. You can also email your enquiry online now and we will contact you shortly.