super fund and HDT or FT

Viewing 5 posts - 1 through 5 (of 5 total)

penguinchick
Member
@penguinchick
Join Date: 2005
Post Count: 38
November 8, 2005 - 4:25 am
Hi experts,
does anybody know if self-managed super fund can become beneficiary (receive distribution) from HDT or family trust?
Thanks.
Cheers,
Daniela
cata
Participant
@cata
Join Date: 2005
Post Count: 559
November 8, 2005 - 6:03 am
A couple of things you need to check. Does the SMSF allow for this and provided the resultant distributions do not
breach the Rule against Perpetuities.
The rule against perpetuities is a rule against remoteness of vesting ie the property must vest in a person within the perpetuity period. If the rule is breached the distribution would fail.
I have seen it done.
Hope this helps
CATA
Asset Protection Specialist
[email protected]
penguinchick
Member
@penguinchick
Join Date: 2005
Post Count: 38
November 8, 2005 - 9:34 pm
thanks Cata
coastymike
Participant
@coastymike
Join Date: 2005
Post Count: 125
November 17, 2005 - 9:12 am
Section 273(6) of the ITAA 1936 says that income derived by a SMSF as a beneficiary of a discretionary trust will be deemed to be special income. This means that any distributions from a discretionary trust to a SMSF will be subject to a rate of 47%. Generally distributions from discretionary trusts to a SMSF are not advised.
cata
Participant
@cata
Join Date: 2005
Post Count: 559
November 17, 2005 - 8:59 pm
Hi Coasty
I have heard recently that using a hybrid or unit trust to invest in a SFSF will be outlawed by 2009. My source is usually correct. What are your thaughts?
CATA
Asset Protection Specialist
[email protected]