Trust Structure
Fixed Interest Trust
Defined Entitlements. Predictable Succession.
A fixed interest trust provides beneficiaries with clearly defined, enforceable rights to income or capital, offering certainty, clarity, and structured succession planning outcomes.
Overview
Certainty of Entitlement. Structured Wealth Transfer.
Pre-defined beneficiary rights for clear and predictable outcomes
A Fixed Interest Trust stands in contrast to the discretionary model — each named beneficiary holds a defined, legally enforceable right to a specified share of the trust's income or capital. This certainty makes the structure ideal where the settlor's distribution intentions are clear and unlikely to change.
Fixed interest trusts are frequently used in estate planning where the settlor wishes to ring-fence a specific asset for a particular beneficiary — for example, leaving a property to a surviving spouse for life, with the remainder passing to children on death.
While they offer less flexibility than discretionary trusts, fixed interest trusts provide greater transparency and predictability for beneficiaries, and are easier to administer where distributions are formulaic rather than subjective.
Key Jurisdictions
100%
Certainty on Beneficiary Entitlement
What It Offers
Key Features & Benefits
The defining characteristics that make the Fixed Interest Trust an effective tool in your wealth planning strategy.
Fixed Beneficiary Entitlements
Each beneficiary holds a defined interest — whether income, capital, or both — which is legally enforceable and not subject to trustee discretion.
Pre-Defined Distribution Formula
The trust deed specifies exactly how income and capital are to be distributed — removing ambiguity and ensuring the settlor's wishes are carried out precisely.
Life Interest Structures
Commonly used for life interest arrangements — granting income to a spouse for life, with capital passing to children or grandchildren on the life tenant's death.
Predictable Administration
With predetermined distributions, administration is streamlined — no annual discretionary reviews required, reducing professional fees and complexity.
Legal Clarity
Clear entitlements minimise the risk of beneficiary disputes, reducing potential legal challenges to the trust's administration or distributions.
Succession Certainty
Ideal where the settlor has specific succession intentions — particularly for family homes, business interests, or investment portfolios passed to defined heirs.
The Process
How It Works
From consultation to fully established trust — a clear, guided process managed by our specialists at every stage.
Define Beneficiary Class & Entitlements
We work with you to identify each beneficiary and their precise entitlement — whether to income, capital, a percentage share, or a life interest.
Trust Deed Drafting
The trust deed is drafted to precisely reflect each beneficiary's interest, distribution mechanics, and the trustee's administrative powers.
Trustee Appointment
A professional trustee is appointed to administer distributions according to the fixed schedule defined in the trust deed.
Asset Settlement
Relevant assets — property, cash, investments, business interests — are settled into the trust and recorded in the trustee's name.
Distribution & Reporting
The trustee makes distributions according to the trust deed's prescribed formula and provides regular reporting to all beneficiaries.
Ideal Applications
When to Use a Fixed Interest Trust
Questions & Answers
Frequently Asked Questions
Common questions about the Fixed Interest Trust answered by our specialists.
Get Started
Establish Your
Fixed Interest Trust
Our trust consultants will guide you through the establishment process — from jurisdiction selection and trust deed drafting to professional trustee appointment and asset settlement.
Other Trust Structures
Not sure if the Fixed Interest Trust is the right structure for your needs? Explore our full range of trust solutions.
View All Trust StructuresImportant Notice: The information on this page is for general guidance only and does not constitute legal or tax advice. Trust structures involve complex legal and tax considerations specific to your jurisdiction and circumstances. You should seek independent legal and tax advice before establishing any trust structure.
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