A limited recourse loan by a member’s family trust to their SMSF might be a Division 7A loan. Can the loan comply with all the rules if it is in fact both types of loan?
Division 7A
Private trusts can benefit from investment bonds
Many ‘private trusts’ run corporate beneficiary structures (sometimes called a ‘bucket company’) to receive income distributions for investment assets that if retained within a family trust or distributed to high-income adults or children, would otherwise attract tax at the top marginal tax rate (MTR). An issue with making distributions and creating assets in a private […]
Austock Life is a leading and specialist issuer of insurance bonds investments. Its flagship Imputation Bond (including ChildBuilder) offers a master fund-like menu of over 33 Investment Options constructed under an insurance bond “tax-paid” and “tax-free” distributing structure.