Setup or amend a unit trust

We establish and amend unit trusts for your investments or joint ventures.

A unit trust creates clearly defined interests for each investor or contributor by dividing the trust property into units of equal value. The rights attached to those units, and how they can be transferred, redeemed, or affected by new unit issues, depend entirely on the trust deed. Getting the deed right at formation is the only way to ensure the arrangement works as intended when those questions arise.

What is a unit trust and when should one be used?

A unit trust is a form of trust in which the beneficial interest in the trust property is divided into a fixed number of units, each giving the holder a proportionate entitlement to the trust’s income and capital. Unit trusts are commonly used to pool capital for investment, to hold property with multiple owners, and as a vehicle for joint ventures where each party’s interest needs to be clearly defined and transferable. The trust deed governs the rights of unitholders, the process for issuing and transferring units, the distribution of income and capital, and the circumstances in which the trust can be wound up. We establish new unit trusts and amend existing unit trust deeds to address gaps or changes in the arrangement.

What rights do unitholders have in a unit trust?

Unitholders in a unit trust are entitled to a proportionate share of the trust’s income and capital in accordance with the number of units they hold and the terms of the trust deed. Unlike beneficiaries of a discretionary trust, unitholders have a fixed entitlement that is not subject to the trustee’s discretion, and their rights are governed by the trust deed and the applicable trustee legislation. We advise on unitholder rights and what the deed provides in respect of distributions, transfers, and decision-making.

Can units in a unit trust be transferred or sold?

Units in a unit trust can generally be transferred to third parties, but the process and any restrictions depend on the terms of the trust deed, which may require trustee consent or give existing unitholders a right of pre-emption. Stamp duty may also be payable on the transfer of units depending on the assets held by the trust and the state in which the transfer occurs under the applicable stamp duties legislation. We advise on the transfer process and any restrictions that apply under the deed.

How is income distributed in a unit trust?

Income in a unit trust is distributed to unitholders in proportion to their unit holdings, in accordance with the distribution provisions of the trust deed. Unlike a discretionary trust, the trustee does not have flexibility to vary distributions between unitholders. We advise on the distribution mechanics of the deed and the documentation required to support income distributions from a unit trust.

When should a unit trust deed be amended?

A unit trust deed may need to be amended when the existing provisions do not adequately address the current arrangements between unitholders, when a new class of units needs to be created, or when the trust’s purpose or structure has changed since it was established. Amendments need to be made in accordance with the amendment power in the deed and the applicable trustee legislation. We advise on whether a proposed amendment is within scope and prepare the documentation required to implement it.

Each unitholder's interest defined clearly in the deed from the outset.

Transfer and redemption mechanics that work when a unitholder wants to exit.

Existing trust deeds reviewed and amended where current provisions no longer fit.

The relationship between unitholders is only as clear as the deed that governs it.

When you pool capital or assets with others, the quality of the trust deed determines how well the arrangement holds up over time. Provisions that are unclear or absent do not become clear by convention. Getting the deed right at formation is far less costly than resolving a dispute about what it means after the trust is running.

A unit trust gives each contributor a defined interest, but only if the deed defines it correctly.

You are setting up a unit trust to hold assets or pool capital with others, and you want each party’s interest clearly defined from the outset. But the way the deed is drafted determines how units are issued and transferred, how income and capital are distributed, and what happens when a unitholder wants to exit or there is a dispute. A deed that does not address those questions precisely does not create clarity. It creates the disputes it was meant to prevent.

We will advise on the appropriate unit trust structure for your objectives and what the deed needs to address before it is drafted.
We will draft a unit trust deed that defines each unitholder's interest, the mechanics for issuing and transferring units, and the distribution provisions.
We will advise on stamp duty and tax implications of the structure.
We will review and amend existing trust deeds where the current provisions need to be updated.

You are pooling capital or assets with people you trust, but if the trust deed does not define what each party is entitled to, that trust between people will eventually be tested by the document.

When you build something with others, you want the arrangement to reflect the deal you shook hands on — who contributes what, who receives what, and what happens if someone wants out. A unit trust can deliver that clarity, but only if the deed is drafted to address those questions precisely. A deed that glosses over transfer rights, redemption mechanics, or what happens in a dispute does not preserve the relationship. It creates a dispute waiting for a trigger.

What's included in your unit trust formation service

Unit trust structure advice and deed drafting.
Unitholder rights and transfer mechanics advice.
Income distribution provisions advice and documentation.
Stamp duty and tax implications advice.
Trust deed review and amendment.

What goes wrong when unit trust deeds are not properly drafted?

Unit trust deeds drafted from generic templates often fail to address how units can be transferred, what happens when a unitholder wants to exit, or how disputes between unitholders are resolved. These gaps do not become clear until a triggering event occurs, by which time positions have hardened and the cost of resolving the issue is significantly higher than it would have been to address it in the deed. Unitholders who discover the deed does not reflect the arrangement they agreed on often find there is no easy or inexpensive way to correct it after the trust is running.

Here is how we help you establish a unit trust that reflects the arrangement correctly.

We advise on the structure that best fits the arrangement between the parties and identify the key issues the deed needs to address before it is drafted. We draft the trust deed to reflect the deal between unitholders precisely, including the mechanics for issuing units, transferring them, and distributing income and capital. We advise on stamp duty and tax implications so the structure is understood before commitments are made.

Three steps to establishing a unit trust that works for all parties.

Interests defined, deed drafted, arrangement documented correctly.

Advise and structure.

We advise on the appropriate structure for the arrangement and identify the key issues the deed needs to address.

Draft and establish.

We draft the trust deed to reflect the deal between unitholders and manage the establishment of the trust.

Advise on implications.

We advise on stamp duty, tax implications, and the ongoing administration obligations once the trust is running.

Lawyers experienced in unit trust formation, unitholder rights, and trust deed drafting across Australia, with a particular focus on New South Wales and South Australia.

Unit trust deeds are often the last document the parties focus on when setting up a joint arrangement, even though the deed is the document that governs what happens when things do not go to plan. We advise on unit trust formation and ensure the deed reflects the arrangement the parties have agreed on before the trust starts operating.

We understand you want to know the cost, before we get started.

We will map out our process, from beginning to end, so you know what the journey will look like before you get started.

We will provide you with a clear and detailed Work Proposal covering each step along the way.

Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.

Our great lawyer guarantee

We want to be part of your team over the long term. We achieve this by adhering to these core principles:

Take the time

We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.

Share our knowledge

We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.

Stick to our knitting

We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.

Work as one team

Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.

Fair pricing

For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.

It's your show

We're not in this for our egos. We're in it for a front row seat to witness your success.

Ready to establish or amend your unit trust?

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