What happens when the Unit Investment Trust Matures?
There are three options. First, if the investor holds the appropriate number of units in a Unit Investment Trust (usually 2500 units) the investor can elect to take the securities in kind. This allows investors to control the timing of when they sell their shares. They also will incur capital gains on those shares. Second, the investor may elect to invest their proceeds into another Unit Investment Trust at a reduced sales charge. This will be a taxable event in a taxable account. Third the investor may do nothing and the trust will liquidate and distribute its proceeds to unit holders. This is also a taxable event.
