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Shalendra Pillay

Mar 29, 2022

TRANSFER PROPERTY

in SMSF Technical Forum

I have received an Audit and the following is noted:

- 1 Member and is 65 years old.

- Has property and bank loan.

- Net amount of property at valuation less loan have been paid out as lump sum to member.

- The property and loan have been transferred to the member. Member doesn't have any other property.

- Fund is in process of winding up.

Is this possible? I believe the property needs to be liquidated, loans paid out than remaining could have been taken up as lump sum. I would really appreciate some guidance.

2 answers0 replies

Comments (2)

THE AUDITORS INSTITUTE

Apr 04, 2022

Hi Shalendra

I discussed your issue with a SMSF lawyer and their view was that the loan could be transferred from the Fund to the member as part of the property transfer.

Their view was that the loan would in effect need to be refinanced and the appropriate paperwork done to transfer the liability from the name of the Fund to the member.

Thanks

SMSF AAA