SMSF Borrowing (LRBA) Package

Overview

Patricia Holdings offers a 4 part package suitable for SMSF Borrowing in Limited Recourse Borrowing Arrangements (LRBA). We provide the SMSF Trustee company and all necessary register documents, the Bare Trust Trustee company and all necessary register documents, the SMSF Deed and the Bare Trust at a discounted price.

The package includes:

2 Corporate Trustees

"Proprietary Limited" companies are the most common form of Company and are often used as Trustees of various kinds of Trusts. The Board of Directors meet to make decisions about the Trust and have the discretion (as outlined in the Deed) when distributing the Trust's income or making other important decisions. While the Trustee of a Trust can be an individual(s), it is Patricia Holdings recommendation that the Trustee be a company. There is a legal separation between individuals in their capacity as Directors of the company and their capacity as Beneficiaries or Members of a Trust or SMSF.

The SMSF Trustee can register with ASIC as a "special purpose" company meaning they are eligible for concessional annual review fees. In order to gain eligibility, the company is required to make certain declarations around the purpose of the company and making distributions to shareholders. These should be outlined in the SMSF Trustee company's Constitution. The Patricia Holdings standard single class super trustee company constitution makes such declarations. The SMSF Trustee may also register as a regular company permitted to trade and distribute income but will not be eligible for the concessional review fee. All Members of the SMSF who are eligible to be (i.e. are over 18 and of sound mind) are to be Directors of the Corporate Trustee as set out in Superannuation Legislation.

The Bare Trust Trustee is not eligible for any concessional fees and are free to trade as they see fit. There are no requirements regarding who must be Directors of the Corporate Trustee. The Bare Trust Trustee cannot be the same Trustee as the SMSF Trustee.

What is included in the company documents?

• ASIC Certificate of Registration
• A complete and tailored suite of documents completing your company register, including:
  • All necessary resolutions, applications, consents and registers
  • Share certificates
  • Copy of the ASIC Form 201
  • Letter to the ATO re appointment of Public Officer
  • Company Constitution
  • Allotment Journal
  • A helpful instruction letter

SMSF Trust Deed

A self managed super fund (SMSF) is established for the sole purpose of providing benefits to the members of the fund in retirement. An SMSF needs a Trustee, that can be either be the members of the fund as individuals, or a corporate trustee controlled by the members. The Trustee(s) make investment decisions and implement the strategy of the fund, for the benefit of the members.

An SMSF is highly regulated and often requires the assistance of SMSF specialists to ensure ongoing compliance. A Patricia Holdings SMSF Deed is drafted by a Trust Law specialist and complies with the current legislation to ensure the fund is established properly.

What's included in the SMSF documents?

• A4 binder (white or grey)
• 1 bound copy of the deed
• 1 hole punched copy of deed
• Dividers
• A helpful instruction letter
• Notes for the assistance of the Trustee
• Suggested Investment Strategy
• Binding Death Benefit Nomination form
• Consents to Act as Trustee
• Applications for Membership
• Request to open Bank Account
• Directors Resolutions consenting to act as Trustee

Bare Trust Deed

A Bare Trust (also known as an Asset Acquisition Trust, Custodian Trust or Debt Instalment Trust) is established to allow an SMSF to borrow money for purchasing assets like real estate, listed securities, units in a Unit Trust and even works of art. The Bare Trust holds these assets in trust for the SMSF without it being exposed to the usual risks associated with borrowing money.

What is included in the Bare Trust documents?

• A4 binder (white or grey)
• 3 (2 bound, 1 loose leaf) copies of deed
• A helpful instruction letter
• Consent to Act as Trustee
• Directors Resolutions consenting to act as Trustee