Bare trust

But most of the listeners here are not accountants and financial planners.

So just from a practical point of view, can you confirm there's no requirement for these new things called bear trusts to be involved if your super fund's just buying units in a unit trust? The bear trust has nothing to do with it, does it?

No, no, no.

So the Bear Trust was simply a really horrible thing that was put in place to essentially, the main thing, because I've also got outside of SMSFs and into family wealth protection estate planning to protect a family's wealth for the bloodline.

So SMSFs are really good because they're protected from the trustee in bankruptcy.

From that perspective, the bank would have limited recourse only as against the property, not against the superannuation fund.

So that's limited recourse

borrowing.

They don't have any existing properties.

We've assumed $2,500 SMSF running costs for the Bear Trust and the SMSF ongoing annual audits and reviews.

The mandatory contribution for the male applicant, which is Sid here, we've got, as a guarantor, $32,400 from the employer.

And for his wife, Tina, we've got mandatory contributions annual super contributions of $9,600.