What is it?
This is a special purpose unit trust which is drafted to accommodate the legislation within the NSW Land Tax act which sets specific requirements as to what can constitute a “fixed” trust for NSW land tax purposes. The legislation is peculiar and has requirements that are more extensive than the requirements, for example of the Commonwealth Australian tax office as to what constitutes a fixed trust for income tax purposes.
Are there any specific provisions for this deed?
In this deed, specific provisions are made which state that at all times the unit holders have “present entitlement” to the income and to the capital of the trust. The unitholders must also have a right to force a vesting of the trust if so choose and to require the trustee to transfer the trust property to them in proportion to unit holdings. These trusts should only be purchased in consultation with a professional.
