SMSF Updates
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In-specie Transfer Unlisted Unit Trust or Other Assets Due to Marriage Breakdown
In the event of a marriage breakdown, you can transfer the assets to another SMSF without paying any capital gain tax.
If the transfer is due to a court order, or formal Superannuation splitting agreement – a CGT roll over relief may be available. (Sec126-140 ITAA97 Family Law Act)
To be eligible, you need to meet the following conditions:
– Must transfer to a complying SMSF
– Must be ordered by court or due to relationship breakdown
– Must move all entitlements from SMSF
– Must be in their original form
If the transfer is NOT the result of a marriage break down, there will be definite CGT consequences regardless.
However, you still can transfer but a CGT event does occur, there is a deemed disposal at market value of the assets ( arms length).
The asset is acquired at market value by the other SMSF.
Depending which state – there may be stamp duty.
Should you have further questions in regards to the in-specie transfer between SMSFs, please feel free to contact iCare SMSF at 03 9557 3138 or info@icaresuper.com.au