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You can create all the documents you need to set up a Hybrid Trust (also known as a Hybrid Discretionary 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 of ordering the documents for your Hybrid Discretionary Trust 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.

What documents are included in the Hybrid Trust document package?

Our document package for the Hybrid Trust 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
• an Establishment Kit explaining what to do next.

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

What information do you need to order a Hybrid Trust from Cleardocs?

You can download our checklist of the information required to order a Hybrid Trust here.

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 Hybrid 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 cannot 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 Hybrid Trust deed provides for meetings of unit holders. Also, unit holders have the power to wind-up the Hybrid 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.

Other types of trust from Cleardocs

Cleardocs also has these types of trust available:

• a Unit Trust — fixed
• a Unit Trust — non-fixed
• a Discretionary Trust

Frequently Asked Legal Questions for Hybrid Trusts

• Does the Cleardocs Hybrid Trust have different classes of units?
• Can additional units in a Cleardocs Hybrid Trust be issued in the future?
• Can the unit holders negatively gear their investment in a Cleardocs Hybrid Trust?
• Can a trust own units in a Cleardocs Hybrid trust?
• Can a trustee own units in a Cleardocs hybrid trust?
• Can a corporate trustee own units in a Cleardocs hybrid trust?
• Can a trustee of a Cleardocs Hybrid Trust also be a unit holder in another trust?
• What do I do if my bank won't give me finance because "the trust deed doesn't allow it"?
• If I change from an individual trustee to a corporate trustee (or vice-a-versa) does the Deed require amending?
• Does a Cleardocs trust give me asset protection?
• When should the trustee apply for an ABN for the trust?
• Will the trust be entitled to an ABN?
• I want to change the trustee of my hybrid trust from an individual to a corporate trustee. I have not yet incorporated the company to act as trustee. What do I do?