LRBA (Loan) from a Member to SMSF

Question

How can I create a Limited Recourse Borrowing Arrangement (LRBA) from a Member to an SMSF?

Answer 

Use the "LRBA Suite" service under the "Loans" section of the platform. To find this navigate to Menu > Documents > Create Documents.

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Under the "Lender" tab, you would select "Private" for a related party loan.

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If the loan is to be made from a Member, then you would select 'Individual' as the type of Lender. 

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You should keep in mind the relevant legislative requirements regarding related party LRBA arrangements and seek advice if necessary. 

 

Further Information

Limited Recourse Borrowing Arrangement (LRBA) and Holding / Bare Trusts

 

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