Are you borrowing money to purchase property through your trust?

A trust deed is a document of conveyance which creates and sets out all conditions for a trust, which in itself is an arrangement where a person, called the trustee, holds property for one or more parties.

The trust deed sets out the rules under which the trust is managed, for example, who can be a member, who the beneficiaries are, how the capital and income are to be used and distributed and who is authorised to make decisions.

A self-managed super fund or SMSF is a form of trust.

When borrowing through your trust (or providing a guarantee), your lender or financier will want to ensure that you, the trustee, have the necessary power and authority to, among other things, purchase property, borrow money, mortgage the property and provide the required security.

The bank will require a review (or vetting) of the trust deed and a signed certification from an independent solicitor.