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Monica Lee

May 13, 2022

Edited: May 13, 2022

Bare trust

in SMSF Technical Forum

A and B are the individual trustees for ABC super fund . They set up a bare trust in 2008 and A is the trustee of the Bare trust . They purchased a property in Bare trust . Bare trust indicates that Property is holding 50% by A for superannuation Fund and 50% by A itself. When I do a title search and only A name was on title of the property . Super fund has been accounted only 50 5 ownership of property since 2008 . My question is

Is this ok to hold the property under bare trust without LRBA . is this in house asset ? Lawyer set up previously ...

2 answers1 reply

Comments (3)

THE AUDITORS INSTITUTE

May 16, 2022

Hi Monica

Yes a property purchased by a Fund (with no LRBA) should be purchased in the name of the trustee or trustees of the Fund. The property is held in the name of the trustee or trustees on behalf of the Fund.

Another option is to purchase a property via an ungeared unit trust under the SIS regulation 13.22C rules.

Thanks

SMSF AAA