Unit Trust Deed Template
A unit trust (definition) is a portfolio of stocks, bonds, property, cash or other asset classes, chosen by professional fund managers according to themes and styles of investing. A unit trust is an unincorporated mutual fund structure that allows funds to hold assets and provide profits that go straight to individual unit owners instead of reinvesting them back into the fund.
A Unit Trust Deed is between Unit Holders in a Unit Trust. Where a Unit Trust is used, it is normally accompanied by a Unit Holder’s Agreement.
Your Unit Trust Deed Template Includes:-
- 1 Definitions & Interpretation
- 2 Trust
- 3 Beneficial interest of unit holders
- 4 Issue and classification of units
- 5 Register of unit holders
- 6 Certificates
- 7 Redemption of units
- 8 Transfer of units
- 9 Transmission of units
- 10 Income and capital
- 11 Categories of income and capital
- 12 Distribution to unit holders
- 13 Statements and accounts
- 14 Appointment and removal of trustee
- 15 Variation of trust
- 16 Modification of class rights
- 17 Provisions relating to trustee
- 18 Meetings of unit holders
- 19 Limitation on liability of unit holders
- 20 Investment powers
- 21 General powers
- 22 Termination of trust
- 23 Notices and service
- 24 General Provisions
Unit Trust Deed
This is not legal advice or advice from Precedents Online or its Authors
AUST GOVT a trust is an arrangement where a person or company (the trustee) holds assets (trust property) in trust for the benefit of others (the beneficiaries). A super fund is a special type of trust, set up and maintained for the sole purpose of providing retirement benefits to its members (the beneficiaries).
To create a trust, you need:
- trustees or directors of a corporate trustee
- governing rules (a trust deed)
- assets (an initial nominal consideration to give legal effect to the trust can be used, for example, $10 attached to the trust deed)
- identifiable beneficiaries (members).
A trust deed is a legal document that sets out the rules for establishing and operating your fund. It includes such things as the fund’s objectives, who can be a member and whether benefits can be paid as a lump sum or income stream. The trust deed and super laws together form the fund’s governing rules.
The trust deed must be:
- prepared by someone competent to do so as it’s a legal document
- signed and dated by all trustees
- properly executed according to state or territory laws
- regularly reviewed, and updated as necessary.
To establish your fund, assets must be set aside for the benefit of members.
If a rollover, transfer or contribution is expected in the near future, a nominal amount (for example, $10) can be held with the trust deed. This amount is regarded as a contribution and must be allocated to a member.
If a member can’t contribute to the SMSF (for example, they are over 65 or don’t meet the work test), an administrative discretion is automatically applied to allow a nominal contribution for the member. The amount must be allocated to the member, solely for the purpose of registering the SMSF.