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The purpose of this Kit is to formally and correctly accept new members into your Unit Trust.
This is Best Practice.
This hint is provided by Law Central Legal.
You get everything you need to accept the new member, issue the units and provide a unit certificate.
The Kit Includes:
* New Member's Application Form
* Minutes to issue and allot units from the Unit Trust.
* Certificate for the New Member
This hint is provided by Law Central Legal.
LawCentral is not a law firm. All documents at LawCentral belong to lawyers around Australia.
You are paying money to purchase one Kit for only 1 Unit Trust. That money includes the cost of the insurance taken out by the law firm. Sure, you could get your secretary to retype this Kit and change the names but then 2 things are at risk.
Firstly, you lose the protection afforded by the lawyer's insurance. That PI insurance is valuable protection.
Secondly, if discovered the lawyer will publicly sue your business for the theft of the intellectual property to the fullest extent possible under the law. If you are a law firm, accounting house, financial planner or licensed under ASIC then you risk losing your licence because of the theft.
Think about it. The whole reason for purchasing this Kit is to protect yourself and the Unit Trust.
For a few dollars is it worth the risk? Just generate a new Kit for each meeting.
Alternatively, if you are doing more than 20 of them contact us and we can arrange a discount for a bulk purchase. That way you are properly and fully protected.
This hint is provided by Law Central Legal.
Please enter the name of your Unit Trust. Don’t include the words “The” or “Unit Trust”.
For example, for the “The George Smith Unit Trust” enter:
George Smith
This hint is provided by Law Central Legal.
If you are buying units with a family member then you can put both your names in the box under the heading, "Who is being added as a new Unit Holder?”
However, if the unit trust is issuing 12,000 units to John and 4,500 units to Jeff, then they each need their own "New Member Kit". You need to buy 2 kits.
This hint is provided by Law Central Legal.
The Trustee or Trustees hold the Unit Trust assets in trust for the Unit Holders.
The Unit Holders are therefore the beneficiaries of the trust.
Each Unit Holder gets a number of units in the Unit Trust. In a company you get shares. In a Unit Trust you get units.
If you have 20 units and your friend has 80 units in the Unit Trust then you get 1/5th of the income and voting rights. Your friend gets 4/5ths of the income and voting rights.
Any human being or company can be a Unit Holder.
This hint is provided by Law Central Legal.
Some people say that having the Trustee as one of the Unit Holders offends the rules relating to Trust Law. That is not the case.
Consider John. John is the sole Trustee of the Unit Trust and John is the sole Unit Holder. This would offend the rule of Trust Law. Trust Law requires that a Trustee holds something in trust for someone different than themselves.
However, let’s say that John's wife Linda also becomes a Unit Holder. That is perfectly acceptable. The Trustee is John. The Unit Holders are then John and Linda.
What about if John and Linda are Trustees and they are also the sole Unit Holders. That is also fine. This is because John as Trustee, is holding part of the Unit Trust assets in trust for someone different than himself. The same is true for Linda. That is a valid trust.
If you want to be more technical, John can even be the sole Trustee and sole Unit Holder. This would be OK if John was holding the units in the Unit Trust on trust for his Family Trust (very common) or as Trustee for someone else.
SUMMARY
John is both sole Trustee and Unit Holder (only OK if John holds the units in trust for another).
John & Linda are the only Trustees and Unit Holders (this is perfectly acceptable).
John is sole Trustee and the Unit Holders are only John and Linda (perfectly acceptable).
This hint is provided by Law Central Legal.
Yes.
Write in:
* XYZ Pty Ltd as Trustee of the Jones Family Trust.
Or
*John Edward Smith and Mary Smith as Trustee for the Smith Family Trust.
This hint is provided by Law Central Legal.
You can have one or more unit holders.
You can have one Unit Holder if you want. However, you can't be both the sole Trustee and sole Unit Holder. Trust law states that you, the Trustee, has to hold it on trust for an object or person other than just yourself. If you and your friend were Trustees then you could be the sole Unit Holder.
It is also OK if you and your friend were both the Trustees and the Unit Holders.
E.g.
This is NOT ok: John Smith as sole Trustee and sole Unit Holder.
This is fine: John Smith as sole Trustee and John Smith "as trustee of the Smith Family Trust" as sole Unit Holder. (This is OK because John holds the Units in trust for his family trust).
This is fine: John Smith and Jenny Smith as Trustees and John Smith as sole Unit Holder.
This is also fine: John Smith and Jenny Smith as both the Trustees and Unit Holders.
This hint is provided by Law Central Legal.
This document has been prepared by the law practice Law Central Legal
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