What is a unit trust?
A unit trust is a trust in which the trust property is divided into a number of defined shares called units. The beneficiaries subscribe for the units in much the same way as shareholders in a company subscribe for shares.
The assets or the trust, being the trust fund, are held by the trustee on trust for the unit holders. who generally are entitled to the capital and income of the trust fund in proportion to their holding of units.
EXAMPLE - Unit trust
The Smith Trust has four beneficiaries as follows:
Jenny - 10
Jane - 20
Jeremy - 5
John - 15
The Smith Trust derives $100,000 during a year of income. Therefore the beneficiaries will be entitled to receive the following amounts:
Jenny - $20,000
Jane - $40,000
Jeremy - $10,000
John - $30,000
To order a new Trust, please fill in the following form and submit to us for initial discussion. Our staff will contact you and confirm before your new Trust is registered.