A Bare Trust is set up only if you need to take out a loan (from a bank, a private lender, or any other source). The bare trust cannot be set up until you’ve identified the property the SMSF intends to purchase.
When you’ve identified the property and supplied us with the relevant details, we can set up your bare trust in a matter of hours. Simply copy the following Bare Trust Information section, paste it into an email, enter the required information, and send it to us.
Bare Trust information
What is the lender company’s name and ACN?
Who is the lender?
Lender Company Name and ACN
What is the Lender company’s address?
Total purchase price, loan amount, term of the loan in years, settlement date
Please email this data to us at:
The Bare Trust is used when the SMSF wants to borrow funds from a third party for investment purposes. The Bare Trust consists of a Corporate Trustee, a Custodian Trust and a Bare Trust.
The Bare Trust structure consists of 3 separate entities and each entity costs $950 to set up. The potential cost is $2,850 consisting of the following:
- Corporate Trustee – $950.
- Custodian Trust – $950
- Bare Trust – $950
If you already have the Corporate Trustee set up, we can help you to set up the other 2 entities.
There are different state-based requirements about whether to sign the Bare Trust Deed before or after entering into the contract of purchase.
For NSW, TAS and ACT, the purchase contract must be signed and dated before the Bare Trust Deed.
For SA,QLD and NT, the Bare Trust Deed must be signed and dated before the purchase contract.
For VIC and WA, the Trustee can sign the purchase contract and the Bare Trust Deed in any order.