Application for Units
An Application for Units is a key document when setting up a unit trust to outline the number of units purchased, the purchase price and acceptance of terms.
5.0 (1 reviews)
Last updated December 19, 2024
Under 5 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
When there is a new unit holder of the trust, there must be an application made for the units within the trust. This document is used by prospective unit holders of the trust who are formally requesting units from the trustee. This application includes the details about the units being transferred as well as the acceptance of the terms of the unit trust deed.
Use this Application for Units if:
- The trustee needs to transfer units to a new unitholder
- You want a new unitholder to accept the terms of an existing unit trust deed
- The Unit Trust that has been established has a new unit holder
- The type of units being issued need to be specified
- The number of units being issued and the amount paid and/or unpaid for the units needs to be specified
What does the Application for Units cover?
This application covers all the necessary information that has to be provided when someone becomes the bemeficiary (Unit Holder) of a Unit Trust.
Other names for an Application for Units includes:
- Unit application
- Unit holder application
Other documents you may need:
The Legal Risk Score of a Application for Units Template
Our legal team have marked this document as low risk considering:
- The document involves financial commitments, as it requires the applicant to specify the amount paid and unpaid for the units, which implies an obligation to fulfill these payments.
- The structure of the trust as a "Fixed Unit Trust" may limit the flexibility of the investment, as such trusts typically have set terms and distributions that cannot be easily altered.
- There is an inherent risk in the lack of detailed terms regarding the management or operational aspects of the trust, which might affect the decision-making processes and the overall control the applicant has over their investment.
Overall, users with a basic understanding of trust structures and financial commitments will find this document straightforward, but should be aware of the potential lack of flexibility and detailed operational governance.
Application for Units Checklist
Complete your free Application for Units with our checklist
Submit the Application
Ensure that the completed application is submitted to the trustee of the Fixed Unit Trust on the date specified in the document.
Payment Fulfillment
Complete any necessary payments as indicated under the "Amount Paid" and "Amount Unpaid" sections to fulfill financial obligations associated with the units.
Document Storage
Keep a copy of the submitted application and any related payment receipts for your records and future reference.
Review by Legal Professional
Consider having the completed application reviewed by a legal professional to ensure all aspects of the trust agreement and your obligations are clear and properly addressed.
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