Selling Shares From Family Trust Or SMSF

You’re ready to sell shares from your family trust or SMSF, but you’re unsure where to start. With our team’s expertise, we’ve got you covered. We’ll handle the complexities, ensuring an efficient and simple transaction.

How To Sell Shares From A Family Trust Or SMSF

Selling shares from a family trust or SMSF can be done with us in a few simple steps.

1. The first step is to complete our online share sale form. This form collects basic information, including your Securityholder Reference Number (SRN) so have it to hand
2. Next, you’ll need to complete a short online ID check for each trustee
3. We’ll also need a recently certified copy of the trust deed or super fund trust deed for SMSF share sales. These deeds can be long documents so we need the following pages:
   1. Cover page
   2. Schedule showing who the trustees are
   3. Signed execution page

To get these documents certified you need to have them certified by one of the following:

• Justice of the Peace
• Commissioner of Oaths
• Solicitor
• Police Officer from the State you reside in (needs to include their Badge Number)

This can be done by signing a photocopy of the document with their name, date and registration number (if applicable).

Timeframe For Share Sales Held By A Trust Or SMSF

When you’re ready to sell shares held by a trust or SMSF, understanding the timeframe involved can help manage your expectations and plan accordingly.

Typically, express share sales are completed on the same day, while a value service may take 1-2 business days. Once the sale is completed, the funds are usually transferred to a designated bank account within three business days. This process makes us the fastest one-off share specialist in Australia. 

However, the timeframe can vary depending on your circumstances, the complexity of the situation and the specifics of your trust or SMSF. Always factor in this time when planning your financial moves.

Cost Of Selling Shares Held By A Trust Or SMSF

Our standard brokerage fees apply when selling these shares. However, there’s also a surcharge that’s either $50 or 0.5%, whichever is greater.

You’ve got three service levels to choose from: Value, Express, and Same Day. The Value service comes with a price tag of $110 or 1% of the total transaction.

It’s important to note that there aren’t any up-front costs or hidden fees to surprise you later. Everything is transparent and straightforward. 

Understanding SMSF And Family Trust Share Sales

Selling shares from either a family trust or SMSF are subject to various laws and regulations. You’re not just selling an asset; you’re potentially altering the financial landscape of the trust or fund.

It’s crucial to understand the consequences of investments, including potential tax liabilities and changes to your investment portfolio.

It’s also important to remember that the timing of the sale can impact the return on your investment. Always consider seeking professional advice to ensure you’re making the best decision for your financial future.

Considerations Before Selling Shares

Before diving into the process of selling shares from your family trust or SMSF, it’s crucial to weigh in on a few key considerations for making an informed decision.

Examine the market conditions: Is it a seller’s market? If not, it might be worth waiting.

Assess the tax implications: Selling shares could potentially incur capital gains tax, so it’s you’ll want to plan accordingly.

How the sale will impact your overall investment strategy? Will it unbalance your portfolio?

Benefits Of Selling Shares From Your SMSF Or Family Trust

Often, selling shares from your SMSF or family trust can provide significant benefits that you mightn’t initially consider. It’s a strategy that can offer tax advantages, particularly if your shares have increased in market value.

Selling can also allow you to diversify your income and investment portfolio, reducing risk by not having all your eggs in one basket. It’s a way to access funds for other purposes, whether for reinvestment or personal needs.

The flexibility to sell shares anytime provides you with greater control over your financial situation. Disposing of shares can potentially stimulate capital growth, especially if you reinvest proceeds into higher-yielding assets.

Therefore, it’s worth exploring this option as part of your overall wealth management strategy.

Frequently Asked Questions

What Are Some Potential Risks Associated With Selling Shares From A Trust Or SMSF?

Potential risks include market volatility affecting share prices, tax implications from capital gains, and possible disruption to your investment strategy. Always ensure you’re well-informed or seek professional advice before making such decisions.

Are There Any Specific Legal Restrictions For Selling Shares Held In A Trust Or SMSF?

Yes, there can be legal restrictions when you’re selling shares from a trust or SMSF. It’s crucial you understand trust deed or SMSF rules, and comply with specific regulations to avoid any legal issues. We can advise you on this.

Can A Trustee Sell Shares From A Trust Or SMSF Without The Consent Of All Beneficiaries?

Yes, you as a trustee can sell or transfer the shares from a trust or SMSF without needing all beneficiaries’ consent. However, you must be acting in their best interests according to the trust’s deed.

How Does The Sale Of Shares From A Trust Or SMSF Impact The Overall Value Of The Trust Or SMSF?

When you sell shares from a trust or SMSF, it’ll directly impact the overall value. The outcome depends on the selling price. If it’s higher than the purchase price, you’ll see an increase in value.

What Happens If The Trustee Sells The Shares At A Loss, Will This Impact The Trust Or SMSF Negatively?

If you, as a trustee, sell shares at a loss, it can negatively impact your trust or SMSF’s value. It reduces your investment capital and might affect future earnings and tax implications. Seek expert advice.