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Phuong Hoang Thi Ngo

Jun 05, 2023

Replace property under fix unit trust

in SMSF Technical Forum

A SMSF investment in relate Unit Trust more than10 years ago (SMSF holding 1/3 total units and the wife who also member SF holding 2/3 total units of Unit Trust) . This Unit Trust has a property A , the wife is legal owner property A until now

The husband who is member of SF and also is sole trustee of Unit Trust holding property B from last few year under his personal name

So in this year Balance Sheet of Unit Trust , the Building at cost the same amount as last year and accountant email me that they removed property A account and property B is current under Unit Trust

I am not sure the rule of unit trust whether allow easy change asset in Balance Sheet of Fix Unit Trust?

If Yes, do I need ask what document support for change property under Unit Trust ? or just ask accountant that put addrees of property B on Balance Sheet of Unit Trust that enough evidence?

If No, Please give me ideas what issues for audit this SMSF?

Please help me

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Jun 05, 2023

Hi Phuong

Thanks, I am not sure I fully understand all the issues.

Questions I have as a starting point are:

1) If property A is owned by the Trust why was it not in name of the trustee of the trust (the husband)?

2) Is property B now owned by the Trust?

3) How did they transfer property A out of the Trust & property B into the Trust? Was stamp duty paid & were they properly transferred at market value?

4) Was property B a residential or commercial property? (If residential do we have a breach of section 66?)

5) Was there a capital gain on transfer of property A?

Thanks

SMSF AAA