Declaration of Custody Trust or bare trust document

Under superannuation law, assets purchased by an SMSF with loan monies must be held by a custodian pursuant to a simple trust arrangement (which is a different trust from the SMSF itself). This trust arrangement is established by the Custody Trust deed.

Cleardocs has 2 types of SMSF borrowing document packages available — SMSF borrowing (bank) and SMSF borrowing (related party). The Declaration of Custody Trust or bare trust document is included in both document packages.

The Custody Trust commences when the custodian named in the Custody Trust deed takes title to the asset purchased with the loan money.