Documents required to complete an SMSF Borrowing
Topdocs is amongst the most experienced providers of Superfund Borrowing documentation and support in the marketplace. Topdocs have provided SMSF Bare Trusts and related borrowing documentation to advisers and their clients since the ability for a Superfund to borrow was introduced in 2007.
Topdocs ensure that every box is checked when clients enter into a SMSF Borrowing arrangement. Their team of specialists carefully go over each transaction, ensuring the documentation provided is compliant not only with the s67A legislation, but with the lending institution as well.
What documentation do I need to facilitate a Superfund Borrowing?
· Documents required to complete an SMSF Borrowing
At the most basic level, you will need to have a Bare Trust prepared. The Bare Trust is the document that outlines the terms of the borrowing process, and is required by the Superfund’s auditor and the bank lender. Well drafted Bare Trusts deal with and mitigate the possible CGT and stamp duty issues associated with Superfund Borrowing.
Apart from the Bare Trust, you may also need the following documents prepared or updated:
- New SMSF Establishment or Deed update - The Deed for the Superfund must contain detailed borrowing provisions, and most pre-2007 deeds will need to be updated. These provisions are required by the auditor and the lender if the lender is a bank.
- SMSF or Bare Trust Trustee Company Registration - The trustee of the SMSF and the trustee of the Bare Trust cannot be the same legal entity. Many banks require the trustee of the SMSF and the trustee of the Bare Trust to be companies, however this is not a legal requirement.
- SMSF Investment Strategy - The Superfund’s Investment Strategy may need to be updated to provide for the borrowing and the increase in holdings in property by the SMSF.
- Related Party Loan Agreement - if the lender is not a bank, the Fund will need a limited recourse loan agreement prepared.
Topdocs SMSF Bare Trust Documentation
Topdocs prepares both bank lender and related party lender Bare Trust documentation. For related party transactions, we provide a Limited Recourse Loan Agreement for clients to utilise.
Key features of our Bare Trust documentation include:
- Topdocs guarantee their documents will be accepted by every bank in the market place;
- Their Bare Trust has been refined to ensure it places all clients in the best possible CGT and stamp duty position;
- Each Bare Trust is provided with individual legal signoff, stating the Bare Trust complies with the SIS legislation;
- Topdocs examine each SMSF borrowing transaction on its own merits, to identify any potential related party issues, or general borrowing restrictions.
Other required documentation:
Besides the required Bare Trust documentation, Topdocs also provides a complete suite of associated documents that clients will need to facilitate a Superfund Borrowing, including:
- Limited Recourse Loan Agreements;
- SMSF Establishments and Superfund Trust Deed updates;
- SMSF Trustee Company registrations;
- Bare Trustee Company Registrations;
- SMSF Investment Strategies with clauses allowing for SMSF borrowing;
- Limited Statement of Advice - some lenders require this.
We recommend that our clients and their professional’s service providers consider the Topdocs SMSF documentation & borrowing package.
Assent Mortgage Finance is able to facilitate compliant and bank approved documentation via Topdocs at ‘preferred’ rates. Simply contact us on 1300 72 86 96 or info@e-mortgages.com.au or alternatively please feel free to call Topdocs direct on 1300 659 242.