The Bare Trust is set up when an SMSF (Self-Managed Super Fund) borrows to buy property under a Limited Recourse Borrowing Arrangement (LRBA). A separate trustee company (the ‘bare trustee’ or ‘custodian’) legally holds the property on trust for the SMSF. The SMSF is the beneficial owner of the property, even though the legal title is in the name of the bare trustee.
The Bare Trust is set up when an SMSF (Self-Managed Super Fund) borrows to buy property under a Limited Recourse Borrowing Arrangement (LRBA). A separate trustee company (the ‘bare trustee’ or ‘custodian’) legally holds the property on trust for the SMSF. The SMSF is the beneficial owner of the property, even though the legal title is in the name of the bare trustee.