In this episode of the DBA Lawyers Podcast, Zacharia Galloway, Lawyer and Bryce Figot, Special Counsel, discuss what to do if you lose your trust deed, the first indexation of the Transfer Balance Cap (TBC) and the traps to be aware of for SMSFs involved in property development.

A lost trust deed is an unfortunate but also common scenario when dealing with both trusts and SMSFs. Bryce discusses the recent case The application of M & L Richardson Pty Limited [2021] NSWSC 105 that highlights where a court may make an order for a trust to be administered on the basis of a copy of the deed, where the original deed cannot be located.

Zac and Bryce then discuss the first indexation of the TBC set to take place on 1 July 2021 and briefly examine how proportionate indexation will affect the personal TBC of those already receiving pensions in retirement phase.

Finally, Zac and Bryce discuss SMSFs engaged in property development and the tips and traps that SMSF trustees should be aware of. They also address a client’s query regarding whether a bank asking for a personal guarantee from an SMSF member in order to secure a loan for a unit trust, where the SMSF is invested in that unit trust, could result in non-arm’s length income (NALI).

Bryce will be presenting DBA Network Pty Ltd’s SMSF Online Update on 5 March 2021 and will be discussing these topics in greater much detail. To register, please click here.

For a chance to have your SMSF query addressed on the show, please send your questions to [email protected].

Related articles and links below.

Sutton v NRS(J) Pty Ltd [2020] NSWSC 826: Lessons for managing lost trust deeds

The $1.6 million transfer balance cap revisited

Is SMSF property development good or too good to be true?

DBA Network

DBA Lawyers

Hosts (in order of appearance): Zacharia Galloway, Lawyer and Bryce Figot, Special Counsel