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Establishing a bare trust

What is a bare trust for my SMSF?

A Bare Trust is a specific trust structure used when your self-managed super fund (SMSF) buys property under a limited recourse borrowing arrangement (LRBA). The Bare Trustee holds the legal title to the property, while your SMSF is the beneficial owner and receives the income and any capital growth.

 

How does Stake Super help with bare trust establishment?

  • Establishes the Bare Trust structure and prepares the required documentation, including the Bare Trust deed and trustee company documents

  • Ensures the documentation is compliant from an administrative and SMSF reporting perspective – but not from a legal advice perspective

  • Coordinates the setup once all details and payment have been received. Bare Trusts are typically ready within 2–3 business days when everything is in order

 

Information you’ll need to provide to set up the Bare Trust


If you need a bare trust set up to purchase a property, please send us through:

  • Bare Trustee company name proposal

    • Must be different from your SMSF’s corporate trustee name

    • Cannot include the word ‘Trust’

  • Directors of the Bare Trustee company

  • Shareholders of the Bare Trustee company

  • Bare Trust name proposal

  • Property address (the asset being acquired)

 

Fees

  • Bare Trust setup (one-off): $1,199

  • Accountant’s letter (if required by a lender or other party): $49

Fees are paid from your Stake SMSF account, so you’ll need enough funds in your Stake AUD wallet to cover these.

Important note
Each Bare Trust can only be used for a single property. If your SMSF acquires another property under an LRBA in the future, you’ll need to set up a new Bare Trust.


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Stakeshop Pty Ltd, trading as Stake, ACN 610 105 505, is an authorised representative (Authorised Representative No. 1241398) of Stakeshop AFSL Pty Ltd (Australian Financial Services Licence no. 548196). Stake SMSF Pty Ltd ACN 648 283 532 (‘Stake Super’) is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. For more information about SMSFs, see our SMSF Risks page. The Stake Accumulate Fund (ARSN 680 653 374) is issued by K2 Asset Management Ltd (ABN 95 085 445 094 AFSL 244 393), a wholly owned subsidiary of K2 Asset Management Holdings Ltd (ABN 59 124 636 782). The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

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