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Hi, a client wants to pay out an in-specie transfer of shares as a lump sum (listed shares). He wants to gift this to his son & daughter who will make an in specie contribution of the shares $110,000K each. It’s the same shares. Do they need to transfer from SMSF to him and then from him to the son & daughter, then back to the super fund? Also what docs should we request for our audit file?
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Hi Neetu
Thanks, I assume the client has met a condition of release to be able transfer out the shares as a lump sum payment.
Yes the shares should be transferred out to the father. The shares should then be transferred to the son & to the daughter. The son & daughter then can contribute / transfer them to the SMSF as a contribution.
For the audit file you would need documentation re a condition of release being met, confirmation of the lump sum payment, copy of the transfer paperwork from the SMSF to the father, copy of the transfer paperwork from the son & daughter to the SMSF. You would also need paperwork to support the value of the shares and details of what type of contribution is being made to the SMSF.
Thanks
SMSF AAA