Fixed Unit Trust (For Taxation Purposes)

About Product

The Fixed Unit Trust Deed (for Taxation Purposes) outlines the establishment and operation of a fixed unit trust, where beneficiaries (unit holders) have a defined interest in the trust's income and capital. This deed ensures the trust operates under strict compliance with relevant tax legislation, including income distribution rules and asset management provisions.

The template includes provisions for trust management, unit issuance, transfer rules, trustee powers, and income allocation. It is suitable for various investment and business structures that require a fixed trust arrangement for taxation efficiency and asset protection.

Please note: This deed is not suitable for use in NSW. A specialised template for NSW is available.

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

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

General Information

A Fixed Unit Trust (for Taxation Purposes) is a structured investment vehicle designed to provide unit holders with fixed entitlements to the trust’s income and capital. It is commonly used for managing investments, distributing profits, and ensuring tax compliance under applicable legislation.

As taxation laws and trust regulations evolve, maintaining an up-to-date trust deed is crucial to ensure continued compliance and operational efficiency. This Fixed Unit Trust Deed has been designed to meet current legal standards, covering trust governance, income distribution, and asset protection provisions.

Please note: This deed is not suitable for use in NSW. A dedicated template for NSW is available to ensure compliance with local regulations.

Benefits

Fixed Entitlements: Ensures unit holders have clearly defined and enforceable rights to the trust’s income and capital.
Enhanced Asset Protection: Helps secure trust assets by establishing a clear legal structure, reducing exposure to personal and business liabilities.
Tax Compliance: Facilitates tax-effective income distribution, ensuring compliance with relevant taxation laws and regulations.
Investment Flexibility: Supports a wide range of investment and business activities while maintaining a structured and transparent governance framework..
Succession Planning: Enables smooth transfer of unit holdings through clearly defined transfer and succession provisions.

Frequently Asked Legal Questions

What is a Fixed Unit Trust?

A Fixed Unit Trust (for Taxation Purposes) is a legal structure where unit holders have a fixed, proportionate entitlement to the trust's income and capital. It is commonly used for managing investments, distributing profits, and ensuring tax efficiency.

How is this trust different from a discretionary trust?

Unlike a discretionary trust, where distributions are made at the trustee's discretion, a Fixed Unit Trust requires income and capital to be distributed according to the fixed entitlements of unit holders.

Is this deed suitable for use in NSW?

No, this Fixed Unit Trust Deed (for Taxation Purposes) is not suitable for use in New South Wales (NSW). If you require a trust deed for NSW, please use the Fixed Unit Trust (NSW Land Tax Purpose) template, designed specifically to meet NSW legislative requirements.

Can this trust hold business or investment assets?

Yes, this trust can be used to hold a variety of assets, including business and investment properties, provided it aligns with the intended tax and asset management strategy.

How long does this document take to assemble?

Depending on the complexity of the data, this document should take approximately 5-10 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.