Buy your retirement home now in your SMSF and use it when you retire?

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Garry and Betty are the directors of the corporate trustee of their SMSF.  They are contemplating acquiring a property through their SMSF, which they plan to lease to an unrelated third party at market value until both of them reach their preservation age and retire as a condition of release. They want to know whether

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Five traps for SMSFs buying off-the-plan

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John and Mary are looking to acquire an off-the-plan property through their SMSF. They need to consider the five following points. 1. Purchaser named on the contract It is important that the correct entity is named on the contract of sale to avoid any adverse tax consequences. If John and Mary’s SMSF will not be

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Electronic company document execution

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Electronic execution of documents is bedevilling lawyers across the country because of the complex interweaving of various statutes and the common law. John and Mary have an SMSF and are the directors of the corporate trustee. They have recently changed the trustee of their SMSF from individual trustees to a corporate trustee. This was a

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What trustees need to consider in closing an SMSF

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What do trustees need to consider when winding up an SMSF? Mary is the sole member and one of two individual trustees of her SMSF – the other being her daughter. Mary’s health is starting to deteriorate and she no longer wishes to run the fund in the future. She now wishes to wind up

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Do bushfires + financial hardship = early access to your super?

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Given all the talk about the dreadful bush fires you’d be forgiven for thinking victims could access their super to help with their recovery.  Think again, as Elizabeth Wang reports. Robert and Mary have been affected by the devastating bushfires. They are struggling financially and are wondering whether it is possible to withdraw some of

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Substituting your SMSF when off-the-plan is off-the-rails

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Bob and Susan can’t afford to complete their off-the-plan purchase unless they use their super. Bob and Susan signed a contract and placed a deposit in their personal capacity some time ago to acquire an off-the-plan apartment which is now nearing completion. The bank has valued the property lower than the original contract sale price

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Is it possible to admit your child as a member to your SMSF?

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Bob and Barbara have recently established an SMSF with a corporate trustee and want their 17-year-old son, Ben, to join their SMSF.  Can Ben join? We often get asked by our clients who are contemplating establishing an SMSF whether they can admit a child member to their SMSF. While it is not uncommon to admit

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Loans under Division 7A and the ATO’s Safe Harbour guidelines

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A limited recourse loan by a member’s family trust to their SMSF might be a Division 7A loan.  Can the loan comply with all the rules if it is in fact both types of loan? A recent enquiry has allowed Townsends Law to visit the question of when will a loan be deemed as a

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The pitfalls of a homemade Will

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While 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 [2018] is a reminder of some of the pitfalls which may arise when a homemade Will

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Can you really disentitle a person from your Will?

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Does violence towards the deceased end the relative’s chances of a successful claim against the Will? It doesn’t matter what sort of ‘family’ unit you have – nuclear, blended or a step-family – family relationships can be challenging and complicated. It’s usually not until a testator has passed away that their estate becomes disputed and

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