HYBRID TRUST

Disclaimer:

NORFOLK CORPORATE SUPPORT is not a legal advisor. It is strongly recommended that you seek competent and qualified advice from a legal adviser or Accountant before ordering any Trust structures.

All Trusts supplied by NORFOLK CORPORATE SUPPORT (NCS) are prepared by a qualified Solicitor.

The Hybrid Trust has several unique features. The beneficiaries hold their respective interests within a defined set of classes from ordinary units to a range of special classes of units each class having its own "terms of reference". The various classes have fixed entitlements within each class so that a group of say special "A" class unit holders will have a fixed entitlement to any profit distribution which the trustee decides to pay that class. The fixed entitlement operates in a similar way to the unit trust but applies only to the money which is directed to that particular class. The Trustee has complete discretion to distribute profit to any class of unit holders but once the decision is made to distribute to a particular class or classes of unit holders then the entitlements are fixed within that class, the trustee having no discretion within that class of unit holders. The hybrid trust enables the trustee to pay money to certain classes and therefore obviously not to pay money to other classes of unit holders. This is a tool which can often be used for the transfer of existing assets from a person or company into a protected trust.

The Trustee can issue additional units which have different "terms of issue". This facility is a major attribute of the "hybrid trust" as it enables the client to transfer assets from "risk" entities into a safer protected vehicle.

Stamp Duty on Establishment of Trust:

Stamp Duty varies from State to State in Australia from $20 to $200AUD. Please contact our office for up to date fees in each State at the time of ordering. (In Victoria $200 is the current cost)

Characteristics of Units

1. Ordinary Units

(a) Class A
A Unit of this class shall confer upon the registered holder thereof:-

1. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the net income of the Trust Fund arising during each financial year;
2. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the capital of the Trust Fund during each financial year;
3. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the Trust Fund on termination of the trusts created by this deed; and
4. the right to vote at a general meeting of Unit Holders.

(b) Class B
A Unit of this class shall confer upon the registered holder thereof:-

1. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the capital of the Trust Fund during each financial year;
2. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the Trust Fund on termination of the trusts created by this deed; and
3. the right to vote at a general meeting of Unit Holders.

2. Special Units

(a) Class A
A Special Unit of this class shall confer upon the registered holder thereof:-

1. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the net income of the Trust Fund arising during each financial year;
2. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the capital of the Trust Fund during each financial year; and
3. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the Trust Fund on termination of the trusts created by this deed.

(b) Class B
A Special Unit of this class shall confer upon the registered holder thereof:-

1. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the net income of the Trust Fund arising during each financial year; and
2. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the capital of the Trust Fund during each financial year.

(c) Class C
A Special Unit of this class shall confer upon the registered holder thereof:-

1. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the net income of the Trust Fund arising during each financial year.

(d) Class D
A Special Unit of this class shall confer upon the registered holder thereof:-

1. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the capital of the Trust Fund during each financial year.

(e) Class E
A Special Unit of this class shall confer with the registered holder thereof:-

1. the right, in common with the registered holders of all other issued units conferring that right, to receive a rateable proportion of the net income of the Trust Fund arising during each financial year provided always that the proposed appointment is approved by special resolution of unit holders entitled to vote.

Order Hybrid Trust