What is a unit holder?

A unit holder is a beneficiary of a unit trust. A unit holder accepts units in a unit trust in a similar fashion to a shareholder accepting shares in a company. Most units are fully paid and have equal rights. These units correspond to an interest in trust property.

Unit trusts cannot derive a profit. At the end of each year/cycle, any profit is distributed to the unit holders proportionate the the amount of units held. These units are easily transferable and not subject to the same regulation as shareholders in companies, making it an attractive option as a business structure.

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Updated — Jun 4, 2018