Paul Trainor
Level 1, 224 Rokeby Road
Subiaco WA 6008
Tel: (08) 9380 4800
www.trainorlegal.biz
Super Gearing Bare Trust Flow Diagram
Bare Trust:
## ACN (##)
Directors:
ATF
Bare Trust
Name:
“Purchaser” of
property (must set
out all 4 names on
the Offer and
Acceptance).
Passively holds the
property for the
Super Fund
## Trust
Named to prevent
confusion
ATF
Super Trustee:
## Pty Ltd
Borrower from Bank
or related party
lender, pays over the
money at settlement
to the Vendor.
ATF
Super Fund
Name:
##
Superannuation Fund
Beneficial Owner
Notes:
1.
2.
3.
4.
5.
Super Fund Trustee agrees to enter into the Limited
Recourse borrowing transaction and to using SGBT to
hold the Property on Trust for the Super Fund.
Super Fund accounts for the Property asset as being
beneficially owned by the Super Fund.
Super Fund makes one or more payments pursuant to
the Loan Agreement and then directs the SGBT to
transfer the Property into the Super Fund.
One property per bare trust.
Trustee company cannot perform any other function
eg not trustee of any other trust (unless that trust is a
bare trust holding another Property for the same
Super Fund).
Takeaways








educate your clients in advance
create the structure in advance (if possible)
early dialogue with the bank is critical
don’t assume related party loan is
easier/cheaper
offer and acceptance wording is critical
subject to finance minimum 42 days (if
possible)
bumpy landing/some degree of client
frustration inevitable
SMSF gearing window may not be open
forever