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Can a trust own units in a Cleardocs unit trust?No (but see next 2 questions). A trust cannot own units in a unit trust because the law . says a trust is not a separate legal person. For example, the 'John Smith Family Trust' cannot own units or any other property. Even so, the trustee of a trust, in his, her or its capacity as trustee, is capable of owning units and other property - see next question. Can a trustee own units in a Cleardocs unit trust?Yes, a trustee can own units in a unit trust - as long as you include the trustee's name and their capacity. For example:
'John Smith in his capacity as the trustee of the John Smith Family Trust'.
In this case, the trustee holds the units in the unit trust on trust for the beneficiaries of the trustee's own trust. (The trust itself cannot own units as it is not a legal entity.). Can a corporate trustee own units in a Cleardocs unit trust?Yes a corporate trustee can own units in a unit trust - as long as you include the trustee's name and their capacity. For example:
'ABC Pty Ltd in its capacity as the trustee of the ABC Family Trust'.
In this case, the trustee holds the units in the unit trust on trust for the beneficiaries of the trustee's own trust. (The trust itself cannot own units as it is not a legal entity.) Can additional units in a Cleardocs Unit Trust be issued in the future?Yes, units may be issued in the future. This is the flexibility that a unit trust provides. Further units may be issued, and units may be sold or redeemed. The deed sets out:
Does a Cleardocs trust give me asset protection?A trust can play an important role in an asset protection strategy, but unit trusts less so. However, if you are concerned about asset protection, then you should seek legal advice concerning your own circumstances. When should the trustee apply for an ABN for the trustABNs are not compulsory. However, there are many good reasons to have one - for example, they help:
Also, you need an ABN to register for GST. Entities carrying on an enterprise in Australia with a GST turnover of $75,000 must register for GST. More information can be found at www.abr.gov.au. Will the trust be entitled to an ABNA trust must meet either one of the following 2 criteria to be eligible for an ABN: Criterion 1 The entity is any one of:
Criterion 2 The entity can answer 'Yes' to each of the following statements:
What do I do if the unit trust deed is lost?You can't simply replace a unit trust deed because to do so may create a new trust - which has tax and stamp duty implications. So, if a discretionary trust deed has been lost, then you need to consider the following steps in consultation with a lawyer:
To set up on Cleardocs, all you need to do is key in your name, industry, email and password. Then you're ready to create Cleardocs documents. It only takes a few minutes. (There's no joining fee. Just a pay per use document fee.) Existing users wanting to start a new document, log in (top right) |