Fixed Unit Trust

The Fixed Unit Trust has only one class of unitholders, all with the same rights to capital and income distributions of the trust in proportion to their unitholdings. 

This document is vital to the formation of a unit trust as it will outline the terms of its use. A Fixed Unit Trust sets out the roles of the key parties within the trust, as well as the powers and rights they will be afforded. In addition, the administrative processes that occur in the function of the trust will also be detailed. This document establishes the purposes of the trust, the rights and obligations of the trustees/unitholders and the various powers of the trustees.

This document differs from the Unit Trust Deed in that this document doesn’t allow the trustee discretion for varying allocations of income depending on the unit class. The beneficiaries subscribe for the units in much the same way as shareholders in a company subscribe for shares. You MUST seek advice from a qualified professional before using this deed to check that it meets your specific circumstances.

In NSW, a Fixed Trust is eligible for land tax threshold exemptions if it satisfies the definition of "fixed trust" under the Land Tax Management Act 1956 (Act). You MUST seek advice from a qualified professional before using this deed to check that it meets your specific circumstances.

Use this Fixed Unit Trust if:

• You wish to establish a trust deed with only one class of unitholders. 
• You want to outline the rights and obligations of the trustees and unitholders

What does this Fixed Unit Trust cover? 

• Creation of Trust
• Valuation of the Trust Fund
• Unit division
• Record of Unitholders
• Unit issue
• Transfer of Units
• Redemption
• Distribution of income
• Power about Distributions
• Reserves
• Capital
• Trustee decisions
• Power of trustee
• Conflicts of interest
• Limit of liability of Unitholders 

Other documents you may need: 

• Unit Trust Deed
• Discretionary Trust Deed
• Discretionary Trust vs A Unit Trust (2020 Update)