Q. I have an SMSF with direct shares and usual other assets. I have a small holding of direct shares – (1) one bank stock in my own name. I would like to transfer into the SMSF. What is required?
A. This is a topic we’ve dealt with before in our regular e-newsletters. Our article on how to set up an SMSF [1] could be useful. Andrew Bloore also contributed an article on the issue of transferring assets [2].
But here’s a summary of what you need to do to transfer an asset:
- Your trust deed has to authorise the sale/contribution.
- It must be done at market value.
- If shares are broker sponsored, contact the broker and ask them to send you the required form so the share registry can be updated; you’ll need to pay a fee for this.
- If issuer sponsored, then contact the registry service and ask for the required form; they’ll probably charge you a small fee.
- You can make in specie contributions – be careful about concessional or non-concessional contribution limits as required.
- Alternatively, the fund could buy the assets from you at market
- Market value is generally the closing buy price on the day that the sale is recorded on the share registry, or earlier if you retain appropriate documentation.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.