Bare Trust
Important Information:
- To invest in real estate, establishing your SMSF before any purchase is a mandatory first step.
- Most financial institutions demand that the SMSF operates under a Corporate Trustee structure.
When purchasing property via a loan, the asset must be held within a specific Property Custodian Trust. This legal arrangement is frequently known as a Bare Trust.
We coordinate the full drafting of all necessary paperwork to implement this Bare Trust structure. Lenders typically require the Bare Trust Trustee to be a registered Company. Importantly, if your SMSF already utilizes a Corporate Trustee, that entity cannot serve as the Bare Trust Trustee. You must incorporate an entirely separate Company for this specific purpose.
Our firm provides a one-time setup service for both the Bare Trust and the required Corporate Trustee with no recurring service fees. The total investment is $1,760 inclusive of GST ($880 for the Bare Trust deed and $880 for the new Trustee Company). This comprehensive fee includes all government ASIC filing and documentation costs.
