The ATO does not give much indication of the type of credit that FIDDf can make. However, the terms of the loan must be reasonable, i.e. its terms must be standard terms for the type of loan it is. If you have any doubts, seek legal advice. I`m sorry, but this is a very concrete question and my license would not allow me to answer it on an online forum. I would suggest that your first window be the auditor of your fund, because he will be the final decision maker as to whether it is acceptable. I guess a lot can depend on the nature of the loan share of the single trust settlement. If it is written in such a way that lenders have a royalty on the units of the trust until they are repaid, you may find that this is not acceptable, as an SMSF may authorize a levy on the fund`s assets, except through a limited appeal agreement. Talk to your listener and give them the full PDS and background. The lender`s recourse to SMSF trustees in the event of a loan default must be limited to the assets acquired under the agreement. A third party may provide its own assets as collateral in order to offer an additional guarantee to the lender. It is essential that the relevant documentation clearly reflects the fact that the agent of an WSIS has taken out a real loan for the acquisition of an asset, particularly where the funds made available for the acquisition of the asset come from a close party.
If there are not sufficient documentation to prove that the money provided by a close party was in fact lent, the amount provided by the affiliated party could be considered a contribution from the Fund. This could result in significant tax consequences if a contribution limit is exceeded. There are a considerable number of experts who give serious false advice for granting credits to close parties. Some believe that a WSIS can lend up to 5% of the value of its fortune to finance its members or relatives of members. Hello Only ask if iam out loud to lend money to a third party by my smsf they are not a parent or a director Don Greetings All loans a SMSF must have a loan contract to prove that a loan is available and to prove that there is no prepayment or early access to money. Many SMSF auditors insist that there is a loan agreement and that reservations should be made about the borrower`s assets. There may be a stamp duty to pay for these transactions, it is recommended that directors seek their own independent legal advice. It`s a difficult position for you. First, I would read your trust to see if there is an obligation for the agent to participate in a written agreement in case of money. Then write a complete story of the oral agreement of conditions and rates between you and your friend with a timeline. Document every step of the process, including the first discussion, the terms and conditions agreement and the presentation of the refund history. I would make sure that you have delivered a record of the delivery of the loan contract to the person by mail or registered hand.
I would then seek legal advice from a lawyer experienced in contract law to determine whether a legal contract does exist and can be implemented by proof of oral agreement, loan and repayment, as they contain all the factors necessary for a valid contract, even if there is no written agreement. According to legal advice, you may also need to meet with the borrower and report that an expedited principal repayment process must be implemented, as you must either meet the audit requirements or work at the end of the loan. I hope it will help. The action and investment strategy should allow investment in private companies. The standard investment strategy we publish is consistent with this view: www.smsfwarehouse.com.au/smsf-investments/strategy/ Hello Liam, In our latest national barometer of debt and savings, we found the golden move