You can create all the documents you need to set up a Hybrid Trust. You can choose whether the trustee is to be a corporation or individuals. You should get legal advice about this. We cannot give that advice.

The whole process takes about 5-10 minutes depending on the number of unit holders. Once you've answered the questions on the Cleardocs system and paid you can download the documents.

The document package includes:

• Consent to act as the Trustees (and related minutes if trustee is a company)
• Application for Units
• Certificate(s) of Unit Holding
• Register of Unitholders
• Register of Units Issued
• Trust Deed - see the description of the Cleardocs Hybrid Trust features below.

All documents are signed-off by our lawyers at Maddocks.

Features of the Cleardocs Hybrid Trust

The term "Hybrid Trust" does not refer to one particular type of structure. There are many types of Hybrid Trust. Indeed, "Hybrid Trust" means different things to different people. Therefore, it is crucial that you understand the type of structure that is established under the Cleardocs Hybrid Trust package. It is described here.

1. Establishing the trust The Cleardocs version of a Hybrid Trust is established by the settlor transferring the settled sum to the trustee in consideration for the issue of the initial units to the initial unit holders.
2. Units: fully paid only The Cleardocs version of a Hybrid Trust allows for only fully paid units. (There can not be partly paid units.)
3. Unit price When the Cleardocs version of a Hybrid Trust is set up, the unit holders receive units in consideration of the settlor paying the settled sum. So there is no unit price that applies to those units. If a unit holder later invests in the Hybrid Trust, then they can be issued units in consideration of their investment (and a price can be set then).
4. Distributing capital, income, or both The trustee may make income distributions or capital distributions or both.
5. Classes of beneficiary There are a number of beneficiary classes equal to the number of unit holders. Each class of beneficiaries is defined by reference to their relationship with the relevant unit holder.
6. Distributions in proportion to number of units In the Cleardocs version of a Hybrid Trust, the general rule is that if the trustee makes a distribution of income and capital, then that distribution must be to each class of beneficiary in proportion to the number of units the relevant unit holder owns in the trust. (However, in certain circumstances, the trustee can make distributions that are not in proportion to the number of units the unit holder owns, see the next paragraph.)
7. Distributions NOT in proportion to number of units In the Cleardocs version of a Hybrid Trust, the trustee may determine to make a distribution otherwise than in proportion to the number of units held by a unit holder. However, if the trustee determines to do this, then:
   • the trustee must first give written notice about the proposed distribution to all the unit holders; and
   • any unit holder (or person who is a joint unit holder) may veto that distribution and so prevent it from being made.
8. Distribution to particular person not required The trustee is not bound to make a distribution to any particular person. Instead, any distribution must be only to some person or persons who meet the definition of a beneficiary in the relevant class.
9. Unit holder meetings The trust deed provides for meetings of unit holders. Also, unit holders have the power to wind-up the trust (by a simple majority) or to remove the trustee (by a special majority).

Need another sort of Hybrid Trust?

The term "Hybrid Trust" does not refer to one particular type of structure. There are many types of Hybrid Trust. Indeed, "Hybrid Trust" means different things to different people. For any other sort of Hybrid Trust, you can order a Cleardocs Hybrid Trust and then arrange for Maddocks to amend it to meet your needs. This is cheaper than asking Maddocks to create your version from scratch.

Simply start by calling Cleardocs on 1300 307 343 and we will direct you to the relevant lawyer at Maddocks to begin the process.

Questions or further information

If you have questions:

• about how to use Cleardocs, contact the Cleardocs helpline on 1300 307 343.


• about legal issues, contact the Cleardocs helpline on 1300 307 343. If you need advice, we will arrange for you to speak with a lawyer at Maddocks. The firm provides a free legal helpline in relation to the documents Cleardocs provides. If you require other legal advice in relation to your particular circumstances, then this will be charged for.