What is an exempt unit trust?

An exempt unit trust is a type of investment vehicle that is not subject to certain tax liabilities, typically because it meets specific regulatory criteria. These trusts allow investors to pool their funds to invest in various assets while benefiting from tax exemptions on income or capital gains generated within the trust. This structure is often used for retirement savings or other investment purposes, providing tax efficiency for unit holders. The specifics can vary by jurisdiction, so it's essential to understand local regulations governing such trusts.