This will be dependant on the specific client situation, and if you are unsure it is recommended to seek specialised legal advice. However, it is common for a Fixed Unit Trust to be established so as to benefit from:
- The ability to pass franking credits to unit holders;
- The ability for the trust to carry forward tax losses (only required to pass the 50% stake test and the income injection test);
- Ease of deductibility of borrowings.