Q&A

Question: What is a unit trust? Can I run a business through one?

A unit trust differs from a discretionary trust in the way that income or assets are distributed to beneficiaries. In a discretionary trust, the trustee has discretion as to how income is distributed, while in a unit trust the beneficiaries are entitled to a fixed sum based on how many ‘units’ they are allocated in the trust deed.

A unit trust can be used for property development projects where independent parties have come together for a particular project.