Hi,
I would like to understand if existing Pty Ltd company (already established in 2005) can work as Trustee for the Security Custodian (Bare Trust) to purchase a residential property using SMSF.Or I have to have establish another Bare Trust. I don't wants to established another company to purchase a single property using my low SMSF fund.
Kind Regards
DeekayYes it can.
But if the company is already doing something – such as trading or acting as trustee etc then it shouldn't be used.
You can get special purpose companies set up for the sole purpose of acting as SMSF trustee and they have lower asic fees so it may be worth setting up a new one anyway.You need to consider a few things when setting up anyway – sucession, shareholdings, consitution etc
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
See Special Purpose companies
http://www.asic.gov.au/asic/asic.nsf/byheadline/Special+purpose+companies?openDocumentAnnual fee is a mere $43
http://www.asic.gov.au/asic/asic.nsf/byheadline/Schedules+of+corporations+fees?openDocumentActually, you are asking about the custodian trustee aren't you. Now I am not sure if these could be special purpose companies. But a call to ASIC would set you straight.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Deekay i am just jumping on a plane returning from holiday in Canada but if you shoot me an email i can send you send you my Ebook i wrote on SMSF and Super Loan borrowings.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I missed something basic above.
You cannot have the custodian trustee the same as the SMSF trustee because of the principle that one cannot hold assets on trust for oneself.
Also the custodian company cannot be a special purpose company.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi,
Can someone please tell me the correct date for the Bare Trust Deed that we are using for the property purchase under SMSF?
This document is going to be sent to the SRO for stampingShould this be the same at the date the vendor signs the contract or sale or the date the buyer signs it, assuming that they sign the document on different dates? Or something else altogether?
Hi,
Can someone please tell me the correct date for the Bare Trust Deed that we are using for the property purchase under SMSF?
This document is going to be sent to the SRO for stampingShould this be the same at the date the vendor signs the contract or sale or the date the buyer signs it, assuming that they sign the document on different dates? Or something else altogether?
Hi there,
Do you have a Specialist SMSF Adviser/ Lawyer? if not you should.
The date the Bare Trust is established will depend on which state you are in. For instance in QLD the bare Trust must be established pre-contract date. Given you are sending for stamping I assume you are already settled in which case the Bare Trust should have been executed.
Did you take out a loan with a bank – as they certainly would not allow a property to settle without the bare trust being settled…
Need more information and this is an important step from a SIS compliance and Stamp duty perspective, so seek advice before you proceed – otherwise it can be costly.
Hope that helps
Cheers, Ivan
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
Will vary from State but in the main it needs to existence prior to signing of the purchase contract.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes, get it wrong and you will be up for double stamp duty – seek legal advice.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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