LRBA unwinding pack and implementation service

LRBA unwinding pack and implementation service

Once a super fund’s limited recourse loan is repaid, the fund may wish to unwind the arrangement.

Effective 24 September 2007 the fund’s interest in the holding (bare) trust does not become an in-house asset merely because the loan has been repaid. Therefore, as the loan comes to an end there are three choices for the super fund to consider:

  • the super fund leaves the property in the holding trust,
  • the holding trustee sells the property to a third party at the direction of the super fund,
  • the holding trust is wound up and the property is transferred to the super fund trustee

The time to unwind an SMSF Borrowing and transfer the property to the super fund trustee can be lengthy due to the need to gather, collate and legally review the documents required by the loacl State Duties and Titles offices to meet the requirements for concessional duty on the transfer.

For this reason our service is conducted in 3 separate phases:

Phase #1 - SMSF Borrowing documentation review

Product type: Legal review | advisory

Price: $330     Further fees apply if more than one property is being transfered  $POA

In Phase #1 we provide you with a list of documentation required by the local State Duties and Titles offices to apply for the concessional duty on the transfer of the property from the holding trustee to the fund trustee.   Once the client has provided the requisite documents, they are legally reviewed to ensure they meet with the evidentiary requiredments.  Advice is then provided as to whether the documents are sufficient to obtain the concessional duty.

Documents required include copies of: current title search of the property |stamped holding trust deed| ASIC company extract | signed and dated Fund establishment deed | change of trustee if any | current strata levy notice for the property | current council or water rates notice| certified copy of each Directors ID.         To access a generic check list of the documents required for an unwinding documentation and implementation please click here.

Timeframe for review and advice:   10 working days from receipt of all required documentation.

Please note:   Matter closing/reopening fee.  

Due to professional liability and property changes, documentation required to support the unwinding application must be received by our lawyers within 2 months or (60 days) from matter opening.  In this case a matter reopening fee of $220 is required to cover the new legal review of documents and client briefing instructions.

Phase #2 - Preparation of Unwinding documentation

Product type: Legal advice | tailoring docs

Price: $880 + $110 per property for property located in QLD.        

Further fees apply if more than one property is being transferred.  $POA

In this phase we provide a suite of documents tailored to meet the needs of the SMSF which has repaid the loan, including: 

  • letter of advice on how to complete, execute and process all documents; 
  • transfer document; 
  • Notice of Sale or relevant document required in your State or Territory; 
  • resolutions of the SMSF Trustee; 
  • formal direction by the SMSF Trustee to the Holding Trustee requiring the Holding Trustee to sign the Transfer; 
  • resolutions of the Holding Trustee; and
  • covering letter to the duties office for concessional stamping of the Transfer.

Phase #3 - Implementation Service

Product type: lodgement of all relevant documents with both the duties and titles offices | legal advice on basic requisitions| and liaison with the local state duties and titles offices.

Price: $660 per property (plus disbursements).     

Further fees apply if more than one property is being transferred.  $POA

Disbursements*  for a standard implementation service include:

  • 2 x title searches (one prior to the transaction commencing for verification of identity purposes and the other upon completion of the transfer) at $50 each;
  • 2 x PEXA fees (one for the Transferor and one for the Transferee) at $137.39 each;
  • 1 x registration fee charged by Land Registry Services of $171.70; and
  • 1 x stamp duty on the Transfer of $750;
  • registered post for the return of original documents at $24.00.

Please note::  These estimated costs are indicative and provided for information purposes only.  As such, they may be subject to change – exact disbursement costs will be confirmed at time of implementation.

Stamping

In the event that the Holding Trust Deed has not been previously stamped, a stamp duty documents package to apply for concessional duty is also required.

Stamp duty is calculated according to the date of execution of the holding trust deed and must be billed in addition to our professional fees and any disbursements.  

SUPERCentral holding trust deed - $550
Non - SUPERCentral holding trust deed - $880

Verification of Identity

Please note that the parties to the transaction will need to undergo VOI (verification of identity) as part of the implementation process.  

This can either be done through Australia Post, or using Townsends Lawyers firm specific VOI form or with a solicitor at our offices.  More information on the pricing for the verification of identity will be included in the unwinding documents package.

For further information as to how SUPERCentral’s associated legal firm Townsends Lawyers, can assist with Unwinding a Limited Recourse Borrowing, please call 02 8296 6266 or make an enquiry.

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