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Hi Brendan

Very quickly…pressed for time.

Generally with a Unit Trust, the entitlements are fixed on the ratio of units individual unit holders have. Each Deed has specific rules and the Deed is sacrosanct – refer recent case on Bamford for that.

Would you consider either a Hybrid Trust with 50/50 (capital and discretionary income) units being held by the respective business partners OR
a Unit Trust where 50/50 units held by the respective business partners Discretionary Trusts.

Be wary of Trustees receiving Trust distributions – refer TR 2010/3.

I think there are easier and cleaner ways to achieve what you are trying to achieve.

Also, the company owning Units would deprive someone of the general CGT discount.