Getting really technical… with unit classes

Hi guys

Any of you know if there are any issues with a hybrid unit trust (HUT) having the ability to issue special income units (like a hybrid discretionary trust (HDT)) on top of all the usual unit classes?

If that sounds ok, are there any other issues with negative gearing in a HUT as you normally would in a HDT? (in this particular case a separate unit trust would own the property itself with the HUT owning the units etc.)

When a unit trust is created, and let’s say all 6 unit classes are defined initially, is it possible to not issue units of a particular class from the beginning (e.g. issue control units, income and capital units etc, but not to issue any special income units)?

Is it possible to ONLY issue control units, completely ignoring units for capital and income distribution until such become necessary?

If units must be issued from the start in order to define a unit class (and I’m primarily concerned with the special income units here), then what would happen when a property needed to be negatively geared – would the trust buy back the ‘token’ special income units before issuing fresh ones for the purpose of negative gearing?

From what I understand if a trust needs to define a new unit class this may cause the trust to be re-settled, is this correct?

Any other comments would be appreciated.

Cheers,
Carl