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Self-managed Super Funds Part II

June 29, 2017

We had a convoluted suite of documents to prepare by yesterday to meet an EOFY deadline. It included:

1. The removal and appointment of trustees of an SMSF;
2. A bare trust deed appointing a trustee, agent and custodian for the super fund;
3. The corresponding Minutes for Resolutions made by the SMSF Trustee;
4. An agreement for the sale from the sole member of the SMSF to the SMSF’s custodian of an undivided portion of a piece of land, for $540,000, the proportion sold being $540,000 divided by the valuation for the whole of the property (yet to be made);
5. A vendor finance clause in the sale agreement, because the sale was on the basis of 100% vendor finance;
6. A non-recourse loan agreement between the custodian borrower and the member lender;
7. A Deed of Forgiveness of the Debt, by way of contribution to the SMSF by the member; and
8. A Deed transferring the share of the property from the custodian to the SMSF.

It was quite a convoluted way for an SMSF member to transfer part of a property into super, but this way no duty was payable and there was compliance with the SIS legislation.

It would have been a lot simpler if the member were still employed, and the employer was contributing to the SMSF, but that was not the case.

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