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Unit Trust

Cleary Hoare’s Unit Trust is a robust fixed entitlement trust without discretionary distribution capability. It has particular commercial application where clients desire:

  • Proportionate ownership;
  • Simplicity;
  • Commercial clarity of ownership.

Our Unit Trust is a trust where each ordinary unitholder has a fixed interest in proportion to their equity (unit holding).  It does not however give unitholders interests in any particular asset of the Trust Fund (such as land).  Trusts which give beneficiaries equitable interests in particular trust assets can have unintended tax consequences for those beneficiaries.  One example of this has been in determining who the "owner" of land is for land tax purposes and consequently, who is liable for assessment (Costa & Duppe Properties Pty Ltd v Duppe [1986] VR 90 and CPT Custodian Pty Ltd v Commissioner of State Revenue (Vic) (2005) 224 CLR 98).

If you want to create a Unit Trust, please click HERE to download our Instruction Sheet. 

If you would like any further information on the Cleary Hoare Unit Trust, please contact Cleary Hoare directly to speak to one of our specialist Solicitors.