SMSF Structure in Chief 2.0
Updated
by
Caroline Pollard
An SMSF transaction generally involves two trust structures and individual guarantors:
1. Bare / Holding / Custodian Trust (and Trustee)
- Holds the security property on trust for the SMSF
2. SMSF Trust (and Trustee)
- Is the borrowing entity
- Holds the loan with the lender
3. Servicing Guarantors (SMSF Members)
- SMSF members must provide their personal financial positions
- In the CRM, these individuals are added as Servicing Guarantors
- In lender gateways, they will appear as Members
A. Creating a New Deal
When setting up a new SMSF deal in the CRM, ensure the following entities are added correctly:
Clients to be added:
- SMSF Trustee Company
- SMSF Trust
- Bare Trustee
- Bare Trust
Servicing Guarantors to be added:
- All relevant Directors and/or Beneficiaries (SMSF Members)
