Unit Trust Transfers

It is not possible to vest an individual asset out of a unit trust to a beneficiary or all beneficiaries.

The assets can be distributed or vested in the course of winding up of the unit trust. The same provisions as to distributing assets from a company apply to unit trusts.

A concern with a vesting is how the liabilities are dealt with.  This can also refer to dealing with liabilities in the preceding 12 months.

We can review and ascertain if the liabilities are to be a concern upon a vesting.

Transferring a unit is subject to the same treatment as a landholder acquisition.

No duty is payable on a transfer of a unit in a unit trust.

Therefore, a business in a unit trust with land less than $2m should not be subject to duty on transfer of the units. However, there are grouping provisions in relation to entities that hold land.

Given the above it is best to confirm the duty implications should units be transferred.

(the above relates to WA, different treatment to units throughout Australia)

Winding up – see liquidation of a company, and vesting notes above.

Generally a change in trustee of a trust is subject to nominal duty if it is not a scheme to change the underlying ownership of property.

That is the transfer of registered legal owner of the property into a new trustee should be subject to nominal duty.