A hybrid trust combines the best features of discretionary and unit trusts. Depending on the objective and particular circumstance, there are many types of hybrid trusts as you will see further on. The rights and entitlements of the beneficiaries/unitholders can vary from being fixed or discretionary with respect to the income or capital of the trust fund.
Depending on the particular terms of the trust , this means that the trustee has the discretion to distribute benefits to the beneficiaries of the trust – to beneficiaries who are on low tax rates, as well as have unit holders who are absolutely entitled to a portion of the benefits.
The income unit trust The class income unit trust The investment hybrid trust The retirement investment trust