Borrowing from SMSF

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Anjohn, 20th Jun, 2020.

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  1. Anjohn

    Anjohn Well-Known Member

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    My wife and I want to invest a property via our Family Trust, but the trust has no funds, can our SMSF lend money to our Trust?
     
    Anjohn, 20th Jun, 2020
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no
     
    Terry_w, 20th Jun, 2020
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  3. SatayKing

    SatayKing Well-Known Member

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    A Trustee of a Superannuation Fund, and an SMSF one at that, even asking such a question? Wow.
     
    SatayKing, 21st Jun, 2020
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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Yep a sign the trustee declaration has not been signed. Or read.
     
    Paul@PAS, 21st Jun, 2020
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    1. How much ?
    2. How long?
     
    Paul@PAS, 21st Jun, 2020
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Hmm...
     
    Terry_w, 21st Jun, 2020
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  7. Superman__

    Superman__ Well-Known Member

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    Your SMSF can buy property as part of it's investment strategy.

    It can even borrow to buy property, but PLEASE seek professional advice on how to correctly structure things as well as ensuring you have an investment strategy that is appropriate for you INCLUDING diversification.
     
    Superman__, 23rd Jun, 2020
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  8. SatayKing

    SatayKing Well-Known Member

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    But read and understand the Trust Deed first, especially any clauses relating to restricted investments?
     
    SatayKing, 23rd Jun, 2020
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  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The deed is less a problem than SISA and SISR and the investment strategy. Any deed should permit what law permits and I have read a lot never seen a restrictive clause on investments yet. . Some older deeds need to be amended for borrowings but that's rare.

    The typical deed will have a clause that allows any investment permitted by law as well as parrot clauses to fill the page with examples.

    I would have more concerns with inequality in investment decisions in a SMSF.
     
    Paul@PAS, 24th Jun, 2020
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