A standard Unit Trust prepared by our office may be wound up in accordance with clause 3.2.2 reproduced as follows:-
The unit holders shall be presently entitled to the capital of the Trust Fund and may with the unanimous consent of all the unit holders require the Trustee to wind up the Trust and distribute the trust property or the net proceeds of the trust property.
- All Unit Holders resolve and consent to wind up the trust in accordance with trust deed provisions.
- Ascertain the taxation consequences and monies required by the Trustee to wind up so that this amount can be retained in the Trust and then distribute trust property or net proceeds, after the sale of the trust assets, to the unit holders. Discharge any taxation indebtedness of the trust.
- Notification to ATO that the trust has been wound up for purposes of income tax and GST.
The above is general advice only.
We would suggest that you contact your Accountant and/or Solicitor for specific advice on winding up your trust and consider any taxation consequences.
You should also consult the trust deed to verify the clause reference above or any other relevant provision for the purpose of winding up.