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Dawood Hassan

Sep 28, 2023

Lost Bare Trust Deed

in SMSF Technical Forum

I hope you're all doing well.

Currently, I'm conducting an audit of the SMSF, which holds a property through an LRBA. Unfortunately, the client cannot locate a copy of the bare trust deed.

I'm seeking guidance on the potential consequences of not locating the bare trust deed. Do I need to qualify the audit report and consider lodging a contravention due to the inability to sign off on section 62 of the SIS Act?

Additionally, is it possible for the client to obtain a replacement bare trust deed?

a quick response is greatly appricated.

Regards

Dawood

2 comments

Comments (2)

THE AUDITORS INSTITUTE

Oct 01, 2023

Hi Dawood

If no bare trust deed can be provided then it would in my view be a breach of section 67A of SIS that requires:

"the acquirable asset is held on trust so that the RSF trustee acquires a beneficial interest in the acquirable asset".

If the LRBA is with a bank (eg Liberty) I would request a copy from them as they should have a copy.

Yes a replacement bare trust deed should be able to be prepared but this would be best discussed with a lawyer to ensure it is correctly done & any stamp duty issues are considered.

If any other members have a view please let the forum know.

Thanks

The Auditors Institute

Dawood Hassan

Oct 02, 2023

Replying to

Thanks