SMSF Bare Trust Package (Bank Loan)

Establish a Bare Trust for SMSF Borrowing (Bank Loan) from $230. This package includes all documentation needed establish a Limited Recourse Borrowing Arrangements (LRBA) for a bank loan. Our SMSF Borrowing package can be used when a SMSF is borrowing to buy a single asset, which may include shares, units or real property. Trust documents created and stored on your dashboard in minutes. All documents are current and compliant.

What is a Bare Trust ?

A Bare Trust is document where the Trustee holds property without any beneficial interest. A self-managed superannuation fund (SMSF) cannot legally borrow by itself; certain criteria must be considered prior to borrowing. If appropriate to do so, the Superannuation Industry (Supervision) Regulations 1993 (SIS Act), may enable a SMSF to acquire a loan to purchase an investment property under a custodian deed or bare trust.

What other considerations are there for establishing a Bare Trust?

You may need to consider the following:

• Compliance with the SIS Act - Superannuation legislation has evolved significantly – many old deeds may not have been drafted to cater for the continual changes in the law which may restrict the Trustees. By updating your deed, it ensures your fund is current, complaint and contains the borrowing provisions that enable Limited Recourse Borrowing Arrangements.
• SMSF and Bare Trust Trustee – Some lenders require both the trustees of the SMSF and the Bare Trustee to be corporate entities. The Trustee of the SMSF and the Trustee of the Bare Trust must be different legal entities. If required, Abbots can prepare the SMSF Trustee changes to replace the individual trustees to the corporate trustee.

Documents included with the Bare Trust Package

• Bare Trust Deed (Declaration of Custody Trust)
• Compliance Letter
• Minutes Documents