THE AUDITORS INSTITUTE | FORUM

Archived Forums

When you become a member of The Auditors Institute, you immediately gain access to expertise, advocacy for your profession and peace of mind.

Ask a question in our members-only forum or use the search function to find prior technical discussions on your topic. You can expect a response within 24-48hrs.

Want to become a Member?

Join Now

Already a Member?

Disclaimer

The forum is made available by The Auditors Institute Ltd for the benefit of it’s members only, and its primary purpose is to facilitate education, training, and discussion between members. The information and answers provided within the forum are of a general nature and do not consider any specific circumstances, objectives, financial situation or needs related to the matter/s raised. The responses should not be construed as financial advice, and each Member should seek their own professional advice before making any decisions. The Auditors Institute Ltd and its representatives are not responsible for any actions taken based on the information provided in the forum.

To test this feature, visit your live site.

Oct 02, 2022

Property Transfer

in SMSF Technical Forum

Hi,

Fund has:

*real estate investment on the balance sheet -

*corporate trustees

*title search indicates the property is owned by the trustees in their individual capacity, not that of the corporate trustee.

The fund is selling the property the question is :

Do they need to actually transfer the titles to the SMSF prior to selling, or can they sell the property and just ensure the proceeds are deposited to the fund.

2 answers0 replies

Comments (2)

THE AUDITORS INSTITUTE

Oct 03, 2022

Hi T

My view is that the property could be sold without transferring the title from the individual names to that of the corporate trustee as long as the proceeds are deposited to the Fund's bank account. This is on the basis that the sale of the property will correct the asset not being in the correct name.

The Fund is arguably in breach is SIS regulation 4.09A that requires:

"The assets of the SMSF must be held separately from any assets held by the trustee

personally or by a standard employer sponsor or an associate of the standard employer sponsor."

If any members have a differing view / approach please let the forum know.

Thanks

SMSF AAA

Kevin Prout

Oct 12, 2022

Replying to

I concur with this view however, it might be prudent to execute an acknowledgement of trust in that the members are holding the investment on behalf of the corporate Trustee?