Related Party LRBA (Shares) meeting ATO Guidelines

Completing a related party loan using the Commissioner’s guidelines – PCG 2016/5, can require a lot of work. There are up to nine (9) legal documents to be completed which ordinarily, can take a lawyer some weeks to prepare and cost thousands of dollars in legal fees.

The LYD RPA Related Party LRBA (RRPL) can be completed in minutes saving time, costs and bringing advance legal templates to an accountants or financial planners office.

This special purpose pack is for shares or units and is akin to an instalment warrant and applies over a collection of shares or units.

► Provided under Strategist membership.

► The master document has been signed off by LY Legal and is congruent with Australian law.

The LYD RPA – Related Party LRBA meeting ATO guideline – PCG 2016/5 RRPL, includes the following nine documents compiled into one process:

1. A Product Disclosure Statement
2. The Commissioner’s guideline PCG 2016/5 as a reference for compliance purposes
3. SMSF Trustee minutes authorising the acquisition of a single acquirable asset being a collection of shares or units under a Holding Trust
4. Holding Trust establishment plus minutes
5. Holding Trustee minutes authorising the acquisition of a single acquirable property asset being shares or units
6. Related Party Loan
7. Mortgage Deed
8. Personal Guarantee (optional)
9. Lease if asset to be used for rental income (optional)

An advanced Strategy Automation carefully thought through by our legal team and Grant Abbott. Worked into appropriate processes, with a documentation trail to ensure compliance, certainty, security and a significant saving in time and resources.

How does it differ from doing it myself?

Consider the above RRPL process and how long it would take entering and even finding some of these documents in an on-line document provider as well as what the cost would be.  Go to a lawyer and seek a quote on the above documents and if it is less than $10,000 you will be lucky.

How long does this document take to assemble?

Depending on the complexity of the data, this document should take approximately 15-30 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

Is this document a legal document?

All master documents have been signed off by LY Legal lawyers. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed  legal document provided by LY Legal.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances.  The Court held that this process was legal work.

Is the document easy to read?

All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.

What lawyers sign off on the LYD documents?

All LYD documents are prepared and signed off by LY Legal.

Are the LYD documents reviewed regularly?

All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.