11/04/2019While homemade Wills and Do It Yourself Will kits may appear to be an 'easier', 'timely' and 'cheaper' alternative than instructing a lawyer to draft your Will the recent Victorian Supreme Court case of Re Hely; Application by Arbuthnot & Donaghue  is a reminder of some of the pitfalls which may arise when a homemade Will has been prepared. Elizabeth Wang outlines some issues.
11/04/2019John is the sole member of his SMSF and is the sole director of the fund's corporate trustee. After seeking financial and tax advice on the benefits of owning a property in his SMSF, John decides to sell his investment property valued at $1m to his SMSF. As his SMSF's available balance is $200k short of the market value, he will enter into a contract with the SMSF for a loan of $200k to fund its purchase using a limited recourse borrowing arrangement. In lieu of paying the loan amount to the SMSF, he received $800k as the vendor from the SMSF on settlement, the $1m sale price less his 'loan' of $200k to the fund. Jeff Song explains.
11/04/2019With the exception of limited recourse borrowing arrangements ('LRBAs'), trustees of a fund are generally prohibited from borrowing money. LRBAs enable trustees to borrow from a third-party or related-party lender to acquire property. The property acquired is held in a separate trust, which is set-up exclusively for this purpose. In the event of default, the rights of the lender are limited to the acquired property alone.
11/04/2019She's a translender
27/02/2019Mary and John purchased a property in NSW using their SMSF in 2012 under a limited recourse borrowing arrangement. Their SMSF has recently repaid the loan and they are now wanting to transfer the property back to their SMSF. Elizabeth Wang discusses.