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You aren't alone. I would read the deed with these questions in mind - 1. What rights does the trustee have to make distributions to others while units are on issue? Are there any restrictions? 2. What capital rights are specifically tied to the units with regards to the investment...

I don't think so. Why would a unit application describe the rights of the beneficiaries when the units aren't on issue? It makes no sense. You guys are on the right track. If you want to know how the ATO feel about your HDT, look at the deed and check the powers of the trustee when units...

I concede that to you coasty, but when the ATO uses the word 'purport' in their taxpayer alert, they are issuing an opinion in that area that they consider the scenario they are describing to be unworkable.

Changing the deed around like that would mean a resettlement. You would need to pay stamp duty on the entire asset value of the trust and capital gains on the market value of the trusts's assets less their cost base would be incurred. HDTs that issue units that have a right to the entire...

No. Have a look at point 9.

I suppose the HDT supporters will now claim that they have to go to court to prove they actually work because the ATO just shot them down. At this point, it is cheaper to own in your own name and sell to a DT later on. The ATO has problems with HDTs that 1 - Do not entitle the unitholder to...

All HDTs are at risk if the unit holders negatively gear income-only units that have no right to capital, or some sort of quasi-right to capital that doesn't relate to the underlying asset. It isn't a ruling, but a heads up. GG's position is now that the units have a right to capital based on...