Related Trusts

SMSF compliance is not only about what a related unit trust holds today, it’s also about what it held in the past. In this article, I discuss the “forgotten” Reg 13.22C rule that can permanently convert an otherwise-compliant unit trust into an in-house asset. The problem is that a breach can arise even where the trust appears compliant at the time the SMSF acquires units due to the three-year asset look-back rule. Here's what you need to know.