BusinessMentor.com.au combines experienced commercial lawyers with cutting edge software.

Superannuation - Security Trust winding up

This document establishes a trust (New Trust), the trustee of which (New Trustee) is not the trust of the SMSF.

A brief summary of what the document provides for, is as follows:

1. the New Trust is to acquire an asset on behalf of and at the request of the SMSF Trustee;
2. The SMSF Trustee ensures that the acquisition of the SMSF Asset is permitted by the SMSF's investment strategy and will not breach the SIS legislation;
3. the funds required to purchase the SMSF Asset will be provided by:
   • contributions by one or more members via their member superannuation accounts and (ii) the balance of the funds will be provided by the Lender;
   • the New Trustee is to enter into an agreement with the Lender (the Finance Agreement) to advance monies to the New Trustee to enable the New Trust to acquire the SMSF Asset;
4. the Finance Agreement is to provide (amongst other terms and conditions) the Lender with limited recourse against the SMSF Trustee and only to the extent of the SMSF Asset;
5. the New Trustee will be the legal owner of the SMSF Asset;
6. the SMSF Trustee will be the beneficial owner of the SMSF Asset;
7. the New Trustee will pay the Lender by instalments over the term of the Finance Agreement;
8. the SMSF Trustee will pay the New Trustee by instalments over the term of the Finance Agreement;
9. if there is a default under the terms of the Finance Agreement, the Lender does not have recourse to any other assets of SMSF - only the SMSF Asset;
10. subject to the SIS legislation, the SMSF Trustee may at any time give written notice to the New Trustee to deal with the SMSF Asset to the extent that the Acquired Asset becomes a Replacement Asset;
11. the SMSF Trustee may at any time after all instalments, fees and charges (incurred by the New Trustee pursuant to the Finance Agreement) have been paid in respect to that asset, require the New Trustee to assign the legal title to the SMSF Trustee.

We strongly recommend that if you are considering using this document, you review the Superannuation - Asset Acquisition Bundle before you order it. The Asset Acquisition Bundle has all of the documents that are required, not just this one. It includes the ability to update your current super deed and investment strategy, and if a member is providing the loan funds, a mortgage agreement as well as all of the normal minutes.