Hi, yes they can close the Fund and payout the property as a lump sum withdrawal. They are over 65 & have full access to their superannuation and can access their superannuation by receiving an in-specie transfer of assets. It is a complicated area & it needs to be planned so all issues are considered & addressed. Issues to be addressed include:

1) Will there be stamp duty payable on transfer of the properties? (some states allow no stamp duty if no change in beneficial owner & no consideration)

2) Property needs to be transferred at market value. A valuation should be obtained to support the transfer value.

3) Is the Fund in accumulation mode? If yes consider impact of any taxable capital gain. 4) Is the Fund in pension mode? If yes has the pro rata minimum pension required to be paid for the year been paid prior to the transfer of the properties as a lump sum?

5) If in pension mode consider if an actuarial certificate is required and obtained and has any tax provision been correctly calculated.

The trustees should receive professional advice to ensure that the above issues have been considered.

Thanks

SMSF AAA

They can actually opt to take out the property as a lump sum withdrawal. However, the property would have to be withdrawn at its market value.