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Sell your units in a unit trust

We will help you sell your units in a way the deed permits, and at a price that holds up after tax.

You have a buyer and a price. That is the easy part of a unit trust exit. The deed will usually require something first: an offer to the existing unitholders, the trustee’s consent, or both. The tax position also has to be settled before the price is fixed. Capital gains tax and duty change what you actually walk away with. We handle the deed compliance and the tax advice together, so the two do not contradict each other.

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A transfer that cannot be unwound

The deed's requirements are met properly, so the sale holds up years later.

The after-tax number

You know what you will actually keep before you agree a price.

No argument at settlement

Duty and consent are dealt with in advance instead of on the day.

What is involved in selling your units?

A unit transfer moves a fixed proportional interest in the trust’s assets from you to a buyer. The mechanics are set by the trust deed. It usually says who must be offered the units first, whose consent is needed, and how the transfer is recorded in the unit register.

Tax sits alongside that. Disposing of units is a capital gains tax event. If you have held them for more than twelve months a discount may apply. Where the trust ran a business, the small business concessions may be available as well. Duty is the buyer’s obligation in most states, but it still affects the negotiation, because it changes what a buyer can afford to pay.

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What restrictions apply to selling my units?

Whatever the trust deed imposes. The common ones are a right of first refusal for existing unitholders, a requirement for trustee consent, and a notice period. Some deeds also restrict who the units can be sold to. These have to be followed, or the transfer may not be effective.

What are the capital gains tax consequences?

Selling units is a capital gains tax event. The gain is the difference between the price and your cost base, which may have been adjusted by tax-deferred distributions over the years. A discount may apply if you have held the units for more than twelve months. Where the trust ran a business, the small business concessions may also be available.

Who pays duty on the transfer?

Usually the buyer, but it varies by state and by what the trust holds. Where the trust owns land, duty can be significant, and a buyer who has not budgeted for it will try to renegotiate. Settle the point in writing before the price is agreed.

What documents are needed to complete the transfer?

A unit transfer agreement, a signed transfer form, and evidence that any first refusal process was followed. Add the trustee’s written consent where the deed requires it. The trustee then updates the unit register, which is what actually records the change of ownership.

Agree the price after you know what the deed and the tax allow

Send us the trust deed and tell us what has been agreed with the buyer. We will tell you what the deed requires first, and what the sale is likely to cost you in tax.

A transfer that breaches the deed may not transfer anything

You have agreed to sell and both sides want it done. What has not been checked is whether the deed lets you sell to this buyer. You also do not know whether the other unitholders have to be offered the units first, or whether the trustee has to consent.

The tax has not been checked either. Your capital gain depends on your cost base and how long you have held the units. Any concession you might claim turns on facts that are difficult to change once the deal is agreed.

We will review the trust deed and identify what has to happen before you can sell.
We will run any right of first refusal process and obtain trustee consent.
We will confirm your capital gains tax position and any concession available to you.
We will settle who pays duty before the price is agreed.
We will prepare the transfer documents and confirm the unit register is updated.

You want out of the trust and the buyer is ready

You went into the trust years ago, with other investors or with family. The asset has done what it was meant to do, or your circumstances have changed, or you simply want the capital back. A buyer has been found, perhaps one of the other unitholders. Now the practical questions start: what the deed requires, what the trustee will say, and how much of the price you will keep.

What's included in your unit trust transfer service

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Trust deed review and transfer restriction advice.
First refusal process management and notices.
Trustee consent coordination.
Capital gains tax advice and small business concession assessment.
Duty advice and allocation between the parties.
Unit transfer agreement and register update.

What goes wrong on the way out

Unit transfers fail in two places. The first is the deed. A transfer completed without the required offer to existing unitholders, or without trustee consent, can be ineffective. That means the register is never properly updated and you are still a unitholder. Buyers occasionally discover this years later when they try to sell.

The second is tax. A seller who agrees a price without confirming their cost base can find the gain is far larger than expected. A seller who could have qualified for the small business concessions may find eligibility gone. Restructuring, retiring, or letting the trust stop trading at the wrong moment can each be enough. Meanwhile duty disputes with the buyer stall settlement, because nobody established who was paying it when the price was struck.

How we get you out with the right number

We read the deed first and tell you what has to happen before the sale can proceed. Where the existing unitholders have a right of first refusal, we run that process properly, so the transfer cannot be challenged afterwards. Where trustee consent is needed, we obtain it in writing.

In parallel we work out the tax. Your cost base, the holding period, whether the general discount applies, and whether the small business concessions are available. That happens before the price is fixed, because the after-tax figure is the only one that matters to you. We prepare the transfer documents and settle the duty question with the buyer, rather than leaving it to settlement day. We also make sure the unit register is properly updated. You leave the trust with nothing outstanding.

How the units get sold

The deed satisfied, the tax known, and your name off the register.

Find the restrictions

We review the trust deed and identify any first refusal, consent or notice requirement that applies to your sale.

Settle the tax

We confirm your cost base, the discount and any concession eligibility before the price is agreed.

Transfer and clear

We prepare the transfer documents, deal with duty, and confirm the unit register has been updated.

Lawyers who confirm the after-tax number before you agree the price

Getting out of a trust is often harder than getting into one, and the reason is rarely commercial. The deed was written by the people who set the structure up, usually in their own interest. It can leave a departing unitholder with less room to move than they expected.

We act for unitholders exiting property trusts, family investment structures and trading businesses. We know how a first refusal process is run properly, and how it is run badly enough to be challenged later. We will tell you what your units are worth after tax, which is a different number from the one on the contract.

Our great lawyer guarantee

Six principles we hold to, whatever you bring us and however long it takes.

Take the time

We listen carefully to understand what you want to achieve, then step you through the advice and the documents.

Share our knowledge

We pass on as much as we can, so you can make your own informed decisions.

Stick to our knitting

We only do what we are good at, so you never pay for our learning.

Work as one team

Someone is always available to answer your question or point you the right way.

Fair pricing

A fixed or capped quote for advice and documents, so you do not carry the price risk.

It is your show

We are in it for a front row seat to witness your success, not for our egos.

Sell your units and know what you keep

Send us the trust deed and tell us what has been agreed with the buyer. We will tell you what the deed requires and what the sale costs you in tax. Then we will prepare the transfer documents.

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