SMSF and Family Trust

Hi so complete Noob here.

I am wanting to buy a business for 17.5 from my smsf and then transfer it to my family trust is this possible and what kind of legal hurdles would i have to overcome etc ?

Thankyou

 

What you appear to be saying is:
1. Your SMSF owns a business.
2. Your trust wants to buy the business from the SMSF.

Other than general share ownership, I don't recall ever seeing an SMSF owning a business (but I guess it's possible). If an SMSF did own a business I can't see why they'd want to sell it too a trust with the same beneficiaries.

I think your understanding of how these entities operate and their benefits isn't quite right. Why do you want to do this?

 

It’s possible. But the trustee of the DT might be the one to buy it

 

so i want to buy the business and be able to work at it etc so my understanding of smsf is that i cant work at it to receive an income or at arms length and all profits are to go back into my super. So the reason for the smsf is to buy the business and gift it my family trust means i can receive a gross profit/percentage and then that business will allow me to invest into another business of mine by using the original business's profit aswell as replacing the super i used from my smsf and also as its in the family trust it will secure that business and others from divorce etc.

i hope that made sense

 

What you've described isn't very clear.

The SMSF can't gift anything, everything has to be at arms' length - transactions, values etc.

There are commentators out there that say it's theoretically possible for SMSFs to own businesses - but overly complex and too difficult to manage. I've not seen any either.

If you want the business to end up in the family trust then the FT should buy it. You can't use your superannuation to fund that purchase.

As to protecting your assets from divorce etc that's a question for your solicitor - the rules will vary by jurisdiction.

 

What does the 17.5 refer to in your original post?

 

ok is there anyway for the family trust to have control of my smsf to purchase that way ?

 

$17500 didnt know if the money value would be significant or not so thought i would add it just incase

 

Who advised you to put the business in the SMSF in the first place? Does the SMSF own shares in a company that owns the business?

 

no

 

no one but due to financials i am unable to buy the business or get a loan so i was trying to see this as a avenue. as i am trying to figure out a way to fund a New venture/prototype of my own.

 

Whoa...SMSF Gift to the trust?. No no no. That is a serious breach. Even if its worth more and on-sold at profit that is a breach.

$17500 is not a signiifcant sum to consider sophisticated asset protection. Super and trust assets are both not protected in a divorce. You cant really asset protect divorce.

 

Lol. I thought you were referring to $17.5m.

 

My thoughts too, but they wouldn't be here and using their solicitor and accountant for creativity/compliance.