SMSF services
Bare trust for SMSF borrowing.
When an SMSF borrows, the asset cannot be held by the fund directly. It is held by a separate holding trustee under a bare trust until the loan is repaid, and the documents must be signed in the right order, before the contract, or duty is payable twice.
Lawyer prepared
SMSF documents prepared by a lawyer with your auditor in mind.
Fast turnaround
Establishment packs and deed updates in one to two business days.
Fixed fee, quoted first
Fixed fee quoted first, including any trustee company costs.
Compliant documents
Drafted to the SIS Act and current ATO positions.
How a bare trust works in an LRBA.
The holding trustee buys and holds legal title to the single acquirable asset. The SMSF holds the beneficial interest, makes the repayments and takes transfer of legal title once the loan is discharged. The lender's recourse is limited to that asset alone.
We prepare the bare trust deed, register the holding trustee company if required, prepare the trustee resolutions, and coordinate with the conveyancing so the purchaser named on the contract is correct from the outset.
The bare trust deed must be executed before the contract is signed, and the purchaser must be the holding trustee. Signing in the wrong name is the single most common cause of double duty in SMSF property purchases.
Why it pays to have this done properly.
Double duty avoided
Sequencing the deed, the contract and the resolutions correctly means duty is paid once, not on the later transfer as well.
Limited recourse structure intact
The deed is drafted so the arrangement satisfies section 67A and the lender's security is confined to the asset.
Coordinated with settlement
We work with the lender and the conveyancer so the fund, the holding trustee and the contract all line up.
Is this you?.
- Your SMSF is buying property with a loan
- You are about to sign a contract in the fund's name
- The lender has asked for a bare trust deed
- The loan is nearly repaid and title needs to transfer to the fund
If any of these sound familiar, a short conversation will tell you whether this is the right document, and what it costs, before you commit.
How it works.
- 01
Tell us what you need
Start online or call us. We take short instructions, names, roles, structure and timing, and confirm this is the right document for what you are actually trying to achieve.
- 02
We check the detail
We confirm eligibility, consents, existing documents and any tax or duty consequence before drafting, so nothing is discovered after lodgement.
- 03
We prepare and lodge
We draft the bare trust deed, holding trustee documents and resolutions, send it for signing with clear instructions on who signs what and when, and attend to any ASIC, State Revenue Office or ATO lodgement.
- 04
You get a complete file
You receive executed documents, registers and confirmations in a single organised pack, plus a short note on what to keep and what happens next.
Fees.
Fixed fee for the bare trust deed and resolutions, with the holding trustee company and ASIC fees quoted separately. Conveyancing for the purchase is quoted alongside.
FAQs
Frequently asked questions.
Still unsure? Call us on (03) 9008 7224 and speak to a lawyer, not a call centre.
When must the bare trust be signed?
Can the fund trustee also be the holding trustee?
What happens once the loan is repaid?
Related services.
Amendments to SMSF for borrowing
Deed amendments enabling a compliant limited recourse borrowing arrangement.
Learn moreSMSF establishment
A complete SMSF establishment pack, deed, trustee, consents and minutes.
Learn moreAmendments to trust for borrowing
Update the deed so the trustee can borrow and give security to a lender.
Learn moreReady to get started with bare trust: smsf?.
Start online or book a consultation with a CMK Legal commercial lawyer in Richmond, Melbourne.