LRBA unwinding pack and implementation service

LRBA unwinding pack and implementation service

Once a super fund’s limited recourse loan is repaid the fund may wish to unwind the arrangement.

Effective 24 September 2007 the fund’s interest in the holding (bare) trust does not become an in-house asset merely because the loan has been repaid. Therefore, as the loan comes to an end there are three choices for the super fund to consider:

  • the super fund leaves the property in the holding trust,
  • the holding trustee sells the property to a third party at the direction of the super fund,
  • the holding trust is wound up and the property is transferred to the super fund trustee.
     

Please note:

The time to unwind an SMSF Borrowing and transfer the property to the super fund trustee can be lengthy due to the need to gather, prepare and legally review the stringent document requirements for concessional duty on the transfer which are required by the various state Duties and Titles offices.

To clarify and expedite these matters, we have modified the unwinding and implementation process into # 3 separate phases.  This has necessitated a change to the pricing and the associated services which may also be required.  We have implemented a new ‘review of documents’ service which will allow us to advise and guide you on which documents will be required for the unwinding and to ensure that the documentation you have is correct prior to commencing the application, allowing for a smoother transaction for you and your clients.  The extended timeframes and legal requirements for matter completion have also necessitated a change in pricing and we have outlined other services which may be required.

 

Phase #1 - SMSF Borrowing documentation review
Product type: Legal review | advisory

Price: $330

Further fees apply if more than one property is being transferred.  $POA

The documentation supplied is legally reviewed to ensure that it meets with evidentiary requirements to obtain the concessional duty on the transfer of the property from the holding trustee to the fund trustee.  Legal advice as to any further requirement will be provided at this point. 

Timeframe for review and advice:   10 working days from receipt of all required documentation.

Please note:   Matter closing/reopening fee.  

Due to professional liability and property changes, documentation required to support the unwinding application must be received by our lawyers within 2 months or (60 days) from matter opening.  Otherwise, a matter reopening fee for a further legal review of documents and client brief of $220 will be charged.

 

Phase #2 - Preparation of Unwinding documentation
Product type: Legal advice | tailoring docs

Price: $880 + $110 per property for property located in QLD

Further fees apply if more than one property is being transferred.  $POA

For property located in QLD please add an additional fee of $110 if preparation of additional documents are required.  

In this phase we provide a suite of documents tailored to meet the needs of the SMSF which has repaid the loan, including: 

  • letter of advice on how to complete, execute and process all documents; 
  • Transfer document; 
  • Notice of Sale or relevant document required in your state or territory; 
  • resolutions of the SMSF Trustee; 
  • formal direction by the SMSF Trustee to the Holding Trustee requiring the Holding Trustee to sign the Transfer; 
  • resolutions of the Holding Trustee; 
  • covering letter to the duties office for concessional stamping of the Transfer; and
  • information and methods for verification of identity
     

Phase #3 - Implementation Service
Product type: This service includes liaison and lodgement of all relevant documents with both the duties and titles offices, and response to any standard requisitions raised by either office.

Price: $660 per property (plus disbursements).    

Please note that further fees will apply if more than 1 property is being transferred. 

Disbursements*  for a standard implementation service include:

  • 2 x title searches (one prior to the transaction commencing for verification of identity purposes and the other upon completion of the transfer) at $50 each;
  • 2 x PEXA fees (one for the Transferor and one for the Transferee) at $137.39 each;
  • 1 x registration fee charged by Land Registry Services of $171.70; and
  • 1 x stamp duty on the Transfer of $750;
  • registered post for the return of original documents at $24.00. 
  • The prices above have been included for your information but are estimates only and subject to change – disbursement costs will be confirmed.

 

Stamping

In the event that the Holding Trust Deed has not been previously stamped, a stamp duty documents package to apply for concessional duty is also required, at a fee of:

Stamp duty will be calculated according to the date of execution of the holding trust deed and will be billed in addition to our professional fee and any disbursements.  

SUPERCentral holding trust deed - $550
Non - SUPERCentral holding trust deed - $880

 

Verification of Identity

Please note that the parties to the transaction will need to undergo VOI (verification of identity) as part of the implementation process.  

This can either be done through Australia Post, or using Townsends Lawyers firm specific VOI form or with a solicitor at our offices.  More information on the pricing for the verification of identity will be included in the unwinding documents package.

For more information as to how SUPERCentral’s associated legal firm Townsends Lawyers, can assist with unwinding a Limited Recourse Borrowing, please call 02 8296 6266 or make an enquiry.

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