Hybrid unit trust - UNIT 11

Question: what is a hybrid unit trust?

Answer: there are many kinds of hybrid trusts. This particular document combines the ownership/unit holding features of a traditional unit trust with the flexibility to distribute income and capital to the unitholders or to a range of other beneficiaries usually found in a discretionary trust.

Question: what is the difference between the unitholders and beneficiaries ?

Answer: the trustee has the power, with the consent of unitholders, to distribute income and/or capital not only to the unitholders but also to any of these general beneficiaries. The general beneficiaries do not have an interest in any of the assets of the unit trust nor do they hold units in the unit trust. It is noteworthy that each class of beneficiaries is defined by reference to their relationship with the relevant unitholder.