Introduction
Thinking about a hybrid trust set up? You are not alone. More business owners and families are asking us about this flexible structure. Simply put, a hybrid trust gives you the best of both worlds – fixed entitlements like a unit trust, plus the discretion to distribute extra income like a family trust. At A One Accountants, we have helped many clients with their hybrid trust set up, and we can help you too.
What Is a Hybrid Trust?
A hybrid trust mixes two structures:
- Fixed part (like a unit trust) – Some beneficiaries hold units and get fixed entitlements
- Discretionary part (like a family trust) – The trustee decides who gets the remaining income or capital
This gives you certainty for some beneficiaries and flexibility for others.
Why Consider a Hybrid Trust Set Up?
Here is why our clients choose a hybrid trust set up:
Asset Protection
Your assets are safer from creditors and lawsuits. In some jurisdictions, a properly structured hybrid trust is very hard for creditors to break into.
Tax Flexibility
We can help you stream capital gains or franked dividends to beneficiaries in lower tax brackets. This saves your family real money.
Estate Planning
Your wealth passes smoothly to future generations. No messy disputes. No unnecessary taxes.
Investment Flexibility
Need outside investors? They can buy units and get fixed returns. But your family still keeps control.
How We Help with Your Hybrid Trust Set Up
At A One Accountants, we do not just hand you a form. We walk with you through every step.
Step 1: We Listen
Tell us your goals. Asset protection? Tax savings? Bringing in investors? We tailor the structure to you.
Step 2: We Choose the Right Jurisdiction
Different places have different rules. We help you pick the best location for your hybrid trust set up.
Step 3: We Prepare the Documents
You will need:
- Trust Deed
- Register of Unit Holders
- Unit Certificates
- Identity documents
We make sure nothing is missed.
Step 4: We Set Up the Trustee
We help you decide – individual or corporate trustee? We explain the pros and cons.
Step 5: We Register for Tax
We handle the ABN, TFN, or EIN applications. You stay compliant from day one.
Step 6: We Record Beneficiaries
We help you keep proper registers for both unit holders and discretionary beneficiaries.
Common Questions We Get About Hybrid Trust Set Up
Can I add more units later?
Yes. Your trust deed should allow it. We can help you set that up properly.
Can a trustee own units?
Yes. For example, “ABC Pty Ltd as trustee for the ABC Family Trust” can hold units. We see this often.
Is this different from a normal unit trust?
Very different. In a unit trust, everything is fixed. In a hybrid trust, you have discretion over part of the income. That flexibility is powerful.
A Word of Caution
A hybrid trust set up is not a DIY job. Trust law is complex. Mistakes can cost you thousands in taxes or leave your assets exposed.
Some trusts are irrevocable – you cannot change them later. Some have “look-back periods” for government benefits. We explain all of this before you sign anything.
That is why you need A One Accountants in your corner.
Ready to Start Your Hybrid Trust Set Up?
You do not need to figure this out alone. A few hours of our time saves you years of headaches.
At A One Accountants, we specialise in helping families and business owners with their hybrid trust set up. We give you straight talk, no jargon, and personal service.
Contact us today. Let us get your hybrid trust set up the right way – together.