Dear Team,
My question is regarding the correct names within the COS for purchasing a property in SMSF
My understanding is that the name should be
' Name trustee of the Bare Trust' as trustee of the ' --- Bare Trust'
Is this applicable in all states?
Example-
'ABC Pty Ltd as trustee of the XYZ Bare Trust'
I thinks a lawyer covering this topic would be a good idea
Hi Noble
The SMSF trustees should get legal advice relevant to the state the property is being purchased in at the contractual stage of the property purchase.
The stamp duty rules are complicated & differ state by state. To further complicate it different lawyers may have different views as to whose name the property should be held in if the Fund has purchased it via a bare trust under a limited recourse borrowing arrangement (LRBA) & the state involved.
If there is interest in this area the Association could look at getting a lawyer to present on this topic & discuss it on a state by state basis.
Thanks
SMSF AAA