Hybrid Trusts - allow SMSF to borrow money ?

[geoffw]

Hybrid Trusts

I guess this is probably a Dale type of question.

I bought Chris Batten's manual. Although it has such simple diagrams, being a non-accountant and non-trust savvy type, I did not really get some of the concepts involved- although I caughgt some glimpses of some very good ideas.

There seemed to be a structure in there which would (perhaps?) allow a Self managed Super Fund a capacity to borrow.

That sounds contrary to anything I've heard for a long time about SMSF.

Did I misread? Or was it just an tantalising idea?

 

[DaleGG]

Hiya Geoff

Chris Batten is in a league of his own with very few peers, I would suggest. I read his book last night and came away impressed, confused . . . and then a little disappointed.

CB could have gone further and explained various concepts in more depth. Moreover, to talk briefly abt a concept, then say there is a controversial tax ruling by the tax office and NOT provide any further thoughts, advice or opinions was incredibly frustrating!!!!

I know, I know, he's a solicitor, but . . . .

Actually, to be honest, I came away inspired!

Yes, the book does suggest a number of scenarios where a superfund can use a unit trust to still buy IP's although I do not recall any of them involving a hybrid trust.

A good read and I can recommend it.

Dale

 

[geoffw]

Sorry, not a hybrid trust, a unit trust... I'm just coming to terms with trusts. Then how can a unit trust be used to borrow? Could it be set up then such that an SMSF can buy an IP?