Unit Trust is a type of trust where the beneficiaries are not a pool of eligible people that is entitled to distribution (such as in a family trust). Instead, the beneficiaries are those who has subscribed to units issued by the trust. It is similar to a shareholder purchasing shares issued by a company however the fundamental difference between unit holders and shareholders is that a shareholder does not have legal or equitable interest in the assets of the company and a share is a separate piece of property.
Units can be transferred or assigned, usually in accordance with the terms of the unit trust deed (To read more on what a trust deed is, click here). Our unit trust deed will specify the process of transferring units that will suit your needs.
Unit trusts are commonly used to manage joint investments because generally speaking, it has less regulation and statutory duties than a company and still enjoy the advantages of a limited liability protection especially by using a corporate trustee.
Our commercial lawyers will assist you in deciding whether a unit 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.