Fixed Unit Trust (For NSW Land Tax)

About Product

This Fixed Unit Trust template is designed for establishing a trust that meets the New South Wales Land Tax Management Act 1956 requirements. It ensures unit holders have a fixed entitlement to the trust's income and capital, aligning with land tax benefit criteria in NSW. The template covers the essential elements, including the rights and obligations of trustees and unit holders, procedures for issuing and transferring units, and guidelines for asset distribution and valuation. Tailored to investor needs, it ensures compliance with state-specific legal standards and aids in achieving tax efficiency.

► $129.00 (inc GST) - OR provided under your unlimited membership (exc ASIC fee)

► The master document has been signed off by LY Legal and is congruent with Australian law.

General Information

This Fixed Unit Trust template is structured to form a legal entity where unit holders possess an unchangeable right to the income and capital of the trust, a requirement for qualifying for land tax thresholds in New South Wales. It defines the trust's operations, including the administration of trust assets, the appointment and powers of the trustee, and the rights of unit holders. The trust aims to provide transparency and stability for investors, ensuring that the distribution of trust income and capital is managed according to predefined rules, which are crucial for meeting the specific land tax conditions in NSW.

Benefits

Tax Efficiency: Aligns with NSW land tax requirements to potentially lower tax liabilities for property held within the trust.
Investor Certainty: Offers fixed entitlements to income and capital, providing clarity and predictability for investors.
Legal Compliance: Ensures adherence to specific statutory requirements of the NSW Land Tax Management Act, minimising legal risks.
Flexibility in Management: Allows for structured decision-making regarding the trust’s property and affairs, with clear guidelines for trustees.
Transferability of Units: Facilitates the buying and selling of units, making it easier to adjust investment stakes according to changing needs and circumstances.

Frequently Asked Legal Questions

What is a Fixed Unit Trust?

A Fixed Unit Trust is a trust structure where unit holders have a predetermined entitlement to the trust's income and capital, which is fixed and cannot be altered by the trustee.

Why is it important for NSW Land Tax purposes?

In NSW, owning property through a Fixed Unit Trust can allow for land tax thresholds and concessions, as unit holders are recognised as having a fixed entitlement in the trust's property.

Can the trust's terms be changed after establishment?

The terms of a Fixed Unit Trust are generally fixed; however, changes can be made if they comply with legal requirements and are agreed upon by all unit holders.

How are units in the trust transferred or sold?

Units can be transferred or sold according to the procedures outlined in the trust deed, usually involving notification to and approval by the trustee, ensuring transparency and fairness in transactions.

How long does this document take to assemble?

Depending on the complexity of the data, this document should take approximately 30-50 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts.

Is this document a legal document?

All master documents have been signed off by LY Legal lawyers. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.

Is the document easy to read?

All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.

What lawyers sign off on the LYD documents?

All LYD documents are prepared and signed off by LY Legal.

Are the LYD documents reviewed regularly?

All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.

Can I get a sample of this document?

Yes, please email support@lyd.com.au to request a sample document for you to review.

Stamping and Lodgement of Trusts

The fees and stamping requirements for establishing a trust deed vary throughout Australia, and the duty payable also varies depending on the type of property that is held by the trust. Please contact our partners at Eventum Optimum (EO) on info@eventumoptimum.com.au for more information on when stamping is required (in what jurisdictions) and the fees/duties payable. EO are able to provide this service to you.