Create all the documents you need to set up a Hybrid Trust (also known as a Hybrid Discretionary Trust). In a Hybrid Trust, entitlement to some part of the trust income or capital is fixed and the trustee has discretion to distribute the remainder.
Time taken to complete 15 minutes.
Cost $ 165.00 (inc GST)
Printing Optional printing, binding and delivery for $ 55.00
Legal Sign-offThe master documents are written in plain language and are signed-off by our lawyers at Maddocks.
What documents are included in the Cleardocs Hybrid Trust package?
The document package for a Hybrid Trust includes:
- the Trust Deed;
- Consent to act as Trustee (and related minutes if the trustee is a company);
- Application for Units;
- Unit Certificate(s);
- Register of Unit Holders;
- Register of Units Issued;
- Register of Units Transferred; and
- an Establishment Kit explaining what to do next.
What information do you need to order a Hybrid Trust through Cleardocs?
Our checklist outlines all the information required.
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. The type of structure that is established under the Cleardocs Hybrid Trust package is described here.
- 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.
- Units: fully paid only The Cleardocs version of a Hybrid Trust allows for only fully paid units. (There cannot be partly paid units.)
- 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).
- Distributing capital, income, or both The trustee may make income distributions or capital distributions or both.
- 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.
- 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.)
- 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.
- 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.
- 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. 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.
Seek legal advice
The Hybrid Trust information here should be considered general in nature, and in no way interpreted as legal advice. You must always seek your own independent legal, accounting and financial advice about your particular situation. The summary on this page is for information purposes only.
Questions or further information
If you have questions:
- about how to use Cleardocs, contact the Cleardocs helpline on 1300 307 343.
- about legal issues, contact the Cleardocs helpline on 1300 307 343. If you need advice, we will arrange for you to speak with a lawyer at Maddocks. The firm provides a free legal helpline in relation to the documents Cleardocs provides. If you require other legal advice in relation to your particular circumstances, then this will be charged for.
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