Investing in Trusts through Your Self-Managed Super Fund
At SMSF Depot, we specialize in guiding trustees through the complexities of investing in trusts within their SMSF. Trust structures, such as unit trusts and managed investment schemes, offer diversification and potential tax advantages. However, it’s crucial to understand the regulatory framework to maintain compliance.
Understanding Unit Trusts
Unit trusts are popular among SMSF investors. In this arrangement, your SMSF purchases units in a trust, becoming a unit holder. The trust then invests in various assets, distributing income and capital gains to its unit holders. It’s essential to ensure that these investments comply with the Superannuation Industry (Supervision) Act (SISA) to avoid classification as in-house assets, which are limited to 5% of the fund’s total assets.
Section 13.22C Compliant Trusts I
Investing in related unit trusts can be permissible if they meet the strict criteria outlined in Section 13.22C of the SISA Regulations. These non-geared trusts must not borrow funds, hold interests in other entities, or lease assets to related parties, except under specific conditions. Compliance with these rules ensures that such investments are not considered in-house assets.
Managed Investment Schemes (MIS)
Managed Investment Schemes allow SMSF to pool resources with other investors under professional management. While MIS can offer diversification, trustees must exercise due diligence, as these investments can carry risks, including potential illiquidity. Ensuring that the MIS aligns with your fund’s investment strategy and risk profile is paramount.
Compliance and Strategic Planning
Investing in trusts requires meticulous planning and adherence to regulatory standards. At SMSF Depot, our SMSF specialists provide comprehensive services, including:
SMSF Setup: Establishing your fund with a clear investment strategy.
SMSF Accounting: Maintaining accurate financial records.
SMSF Tax Return: Ensuring timely and compliant tax filings.
SMSF Audit Services: Conducting thorough audits to uphold compliance.
SMSF Compliance: Navigating the regulatory landscape effectively.
Our online SMSF solutions are designed to provide you with the tools and expertise needed to manage your superannuation investments confidently.