Ungeared Unit Trusts
What is a Unit Trust in SMSF?
A Unit Trust in SMSF is a legal structure that allows your Self-Managed Super Fund to pool funds with related or unrelated parties to invest in assets like property or shares. This setup offers flexibility and a powerful tool for diversification while staying within ATO guidelines.
When Can SMSF Use a Unit Trust?
Unit Trusts are commonly used when:
Your SMSF partners with individuals or entities to buy an asset.
You want shared control without full ownership.
You require a structure to meet borrowing restrictions under SMSF rules.
SMSF must follow strict guidelines, particularly if related parties are involved. SMSF Depot ensures full compliance with SMSF Australia laws and the ATO’s guidelines.
Key SMSF Compliance Factors
For SMSF Compliance, a Unit Trust must:
Not breach in-house asset rules.
Not lease assets to related parties.
Avoid loans to members or associates.
Meet arm’s length investment conditions.
SMSF Depot assists trustees in structuring compliant Unit Trusts tailored to investment goals and ATO regulations.
Benefits of Using a Unit Trust in SMSF
Asset pooling with unrelated parties
Limited liability & tax transparency
Efficient property investment structure
Increased diversification of SMSF portfolios
Need help setting up? SMSF Depot simplifies the entire process with our expert SMSF Solutions team.