Bare Trust
Setup
Professional Bare Trust Setup for SMSFs and Property Transactions
If your SMSF is looking to purchase property using borrowed funds, getting the bare trust structure right from the very beginning is not optional — it’s essential. An incorrectly established bare trust can trigger serious compliance breaches, jeopardise your property transaction, and create costly legal headaches down the track.
At The Taxation, our qualified accounting professionals guide you through the entire bare trust setup process with precision and care. We make sure your structure is legally sound, fully aligned with ATO and superannuation requirements, and ready to support your property purchase — giving you confidence at every step.
Our Clients
Who Our Services Are Designed For
Whether you receive a paycheck or manage a complex portfolio, our specialists tailor every return to your situation.
SMSF Trustees Purchasing Property
If you're an SMSF trustee planning to acquire property, a correctly structured bare trust must be in place before contracts are signed. We set it up right the first time.
Property Investors Using Their SMSF
Investors who want to ensure proper legal ownership of assets and full compliance with superannuation legislation throughout the transaction.
SMSFs Entering Borrowing Arrangements
Any SMSF entering into a Limited Recourse Borrowing Arrangement (LRBA) is required to have a compliant bare trust established as part of that structure.
Clients Seeking Temporary Asset Protection
Businesses or individuals who need a properly structured holding arrangement for assets prior to their formal transfer or acquisition.
Be Prepared
Documents You'll Need to Provide
To get your bare trust set up promptly, we’ll typically need:
- SMSF details and existing trust documents
- Trustee identification
- Beneficiary information
- Details of the proposed property
- Corporate trustee documents (where applicable)
- Any specific requirements from your lender
How We Set It Up — Step by Step
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Initial Review
We start by understanding your SMSF structure, your borrowing arrangements, and the specifics of the property transaction you're planning.
Document Collection
We walk you through exactly what's needed and help you gather everything correctly — no back-and-forth guesswork.
Bare Trust Deed Preparation
We draft your trust deed with the precise wording and structure required for SMSF compliance. Generic templates simply won't do here.
Compliance Review
Every document is checked against current SMSF rules, ATO requirements, and relevant borrowing legislation before anything is finalised.
Completion & Ongoing Support
Once your bare trust is in place, we remain available to assist with any follow-up questions, lender requirements, or coordination with your solicitor or broker.
Frequently asked
Yes. Under a Limited Recourse Borrowing Arrangement, a bare trust is a legal requirement. The SMSF cannot hold the property directly until the loan is fully repaid.
It must be established before the property contract is signed. Setting it up after the fact can cause the entire arrangement to be non-compliant.
No. SMSF bare trusts require specific legal wording that reflects the LRBA rules and superannuation legislation. A generic deed will not meet the requirements.
The trustee of the bare trust holds legal title to the property, but your SMSF is the beneficial owner — meaning it retains all economic interest in the asset.
Absolutely. We regularly coordinate with lenders, mortgage brokers, and legal advisers to keep the process on track and ensure all parties have what they need.
Ready to Set Up Your Bare Trust?