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Please ensure there are no provisions in the Trust Deed to allow for any discretion to distribute income to anyone else other than the unitholders, in proportion to their units.

The trustee has no discretion to distribute income to anyone apart from unitholders in proportion to their unitholdings. However:

  1. the trust deed allows for different classes of Units (like a company can have different classes of shares), and the distribution of income is "subject to any special rights or restrictions in relation to Units of any class". Therefore, if there are different classes of units with different rights (e.g., "Income only Units", or "Capital only units"), then this may affect how income may be distributed - though there will still be no discretion and distributions will still depend on unitholdings.
  2. also, if all of the unitholders agree, the trustee can accumulate income, and it is then to be treated as capital, although capital can only be distributed in proportion to unitholdings (subject to there being different classes of units, as explained above).