Welcome to part four on forming a Unit Trust. Here we will discuss the process of winding-up the trust, how to manage the Trust Bank Account, and how Trustees can be replaced. As you will have learned from the first 3 parts of this series, the setting up and management of Unit Trusts can become quite complex and usually requires the assistance of a commercial lawyer.


Typically, the Unit Trust is wound up on the Vesting Day but can be wound up before this point. When this happens, the property held in trust is released, or distributed, to the unitholders of the Unit Trust in accordance with their proportionate ownership

After the Vesting Day, the Trustee holds whatever assets make up the Trust Fund until they are distributed to the unitholders in the correct proportions.

At this point, the Trustee does not need to convert or “realise” the assets of the Unit Trust. Instead, the Trustee may transfer the remaining assets “in specie”, i.e. in their current form.

Entering into Contracts

As you already know, a Trustee is in charge of managing a trust. The Trustee can, in its own name and on behalf of the beneficiaries of the trust, enter into legally binding commercial contracts.

The Registrar General and company share registers do not record transactions that recognise individuals/companies as acting in Trustee capacity. Companies can, however, under the Corporations Act, obtain information relating to share ownership.

Transfer documents need only identify the Trustee, but do not need to identify the capacity with which the Trustee entered the contract.

Whenever a Trustee (Company) is entering, or considering entering, into contractual dealings for property, any decision made by the Trustee to deal with the property must be kept as a record in the minutes of the directors’ meeting.

Trust Bank Account

If there are many transactions under the Unit Trust, it would be wise for the Trustee to conduct an account on behalf of the trust in its own name. If there will not be many transactions, a building society/savings account will be sufficient.

Any payments being made by or to the Trustee ought to come through the Trustee’s account.

Changing the Trustee

Normally the Trust Deed will be drafted in such a way that the unitholders will be empowered to remove the Trustee and find a replacement at any time, provided the majority agree by instrument in writing.


Are you look at setting up a Unit Trust and don’t know where to begin? You’re certainly not alone. Many people have little understanding of how Unit Trusts operate and what rights and duties the Trustee has in relation to the administration and operation of the Unit Trust.

If you’re after legal advice on Unit Trusts, contact LegalVision on 1300 544 755.

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer
Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at info@legalvision.com.au

View Privacy Policy