TRUSTS (from $195)

Discretionary Trust DeedsRegister New Company Australia

• Consist of two parties, the Settlor (the person creating the Trust) and the Trustee(s).

• Outline that the Settlor has paid to the Trustee(s) a sum of money known as the trust fund as well as the terms and conditions upon which the Trustee will hold this money in trust for designated beneficiaries.

• Outline the beneficiaries of the Trust, whether these people are alive or yet to be born, at the time of establishment.

• Set out the responsibilities, rights, and requirements of the Trustee and the Appointor, who has the capacity to remove the Trustee.

• Have provision for the Trustee to be replaced and for the Trust Deed to be amended.

• Have a life of 80 years.

• Have three alternative provisions for the Appointor –

1. Just one person to have these powers during their lifetime and another person upon the death of the first person (providing they outlive the first), or

2. Just one person to have these powers during their lifetime and then the powers will be exercised by the person that they nominate in their will, or

3. Two people to be appointed jointly during their lifetimes, and then upon the death of the last of these two people, the person that the survivor appoints in their will.

If you require any amendments to the document after it has been returned to you, one of our lawyers can make those amendments, however, the cost for this work is not included in the price of this document.

 

Unit Trust Deeds

• Require a Trustee to be appointed by the Unit Holders.

• Have the ability to have ten Unit Holders (with joint holders).

• Have provision for each Unit Holder agreeing to take up the number of units in the Unit Trust that they determine and are set out in the Deed.

• Have provision for monies paid by the Unit Holders to comprise the trust fund that is held on trust by the Trustee.

• Have a life of 80 years.

• Set out the rights, duties and obligations of the Trustee, the ability for Unit Holders to transfer their units (rights of pre-emption), calling and conduct at Unit Holder meetings.

• Allow the Trustee to be replaced and for the Trust Deed to be amended.

From a taxation perspective, this Deed has been drafted to provide for the Unit Trust to be (initially) a fixed trust. Where a Trust incurs tax losses, certain rules (set out in trust loss measures in the Income Tax Assessment Act (ITAA)) need to be satisfied in order to carry forward those losses.

A trust is a fixed trust if the Unit Holders have fixed entitlements to all of the income and capital of the Trust. No one Unit Holder has the ability to receive more or less given certain circumstances.

For a Unit Trust to be a fixed trust, the Trust Deed must contain a clause that states that units can only be redeemed or issued for a price determined on the basis of the net asset value, according to Australian accounting principles, of the Unit Trust at the time of redemption or issue. If the Trust Deed allows for other methods of valuing new units or the redemption of units, then the Trust will be a “non-fixed trust”.

Your trustees have the ability to issue income units under the terms of this Deed, but depending on the factual circumstances, this may result in the Trust becoming non-fixed.

All relevant Minutes are included in this package.

If you require any amendments to the document after it has been returned to you, one of our lawyers can make those amendments, however the cost for this work is not included in the price of this document.

 

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