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last updated Aug 2023
You will information about this trust throughout the question interface and in our frequently asked legal questions page found under the resources menu above.
Consider if a foreign person will be involved in the administration or conduct of the trust, is a beneficiary of the trust or is related to a person who has a beneficial interest in the trust. If so, and if either now or in the future this trust will acquire land in Australia, the trustee should obtain advice about whether the trust may be liable for additional stamp duty and surcharge rates of land tax.
No, however benefits may vary depending on the class of the unit holder. Click here to read more...
There is only one class or type of unit. (However, in certain circumstances, the trustee can make distributions that are not in proportion to the number of units the unit holders own).
Each unit attracts the same rights. However, the class of people who may benefit by virtue of their relationship with a unit holder will vary depending on whether the unit holder is:
No, but the trustee of a trust can. Click here to read more...
A trust cannot own units in a hybrid trust because the law says a trust is not a separate legal person.
Even so, the trustee of a trust (in his, her or its capacity as trustee) is capable of owning units — as long as you include the trustee's name and capacity. In this case, the trustee holds the units in the hybrid trust on trust for the beneficiaries of the trustee's own trust.
No, but you may be able to use a similar deed. Click here to read more...
You can't simply replace a hybrid trust deed because to do so is likely to create a new trust, which has tax and stamp duty implications.
If the deed has been lost you need to consider the following steps in consultation with a lawyer:
No, however a trustee may be able to borrow in its own right. Click here to read more...
The Cleardocs Hybrid Trust Deed does not confer the necessary rights on unit holders.
This is because the trustee has a discretion to distribute income:
These features mean that it is unlikely a unit holder can claim a deduction for expenses associated with borrowing to invest in units.
However, the trustee may be able to borrow in its own right and to claim a deduction for interest costs against its own assessable income.