Transferring assets out of fund

Overview

This article will help if you have a fund and you wish to transfer all assets (both cash and non-cash) out of the fund.

Common situations where this could arise include:

• Single pension member of the fund has passed away and the fund's assets are transferred out of the fund
• A court order determining that a fund should be wound up and its assets distributed (e.g. divorce settlement)
  

This guide will focus on processing a transfer of assets out of the fund.

Example

Consider a fund with the following assets with the following market values one day before being transferred out of the fund:

Date of Transfer: 25/06/2017
Market Value at: 24/06/2017

The following steps will be followed to transfer both the cash and non-cash assets:

1. The cash assets will be transferred out by processing a Lump sum payment

   Account	Account Code	Debit ($)	Credit ($)
   Transfers Out/Benefits Paid	460000/MemberCode	100,000
   ANZ Bank Account	60400/ANZ		100,000

2. The non-cash assets will be an in-specie transfer:
   
   
   1. Make transferred assets not subject to CGT
      
      
   2. Ensure transferred assets have a market value entered on the date one day before the transfer
      
      

   3. Record the transfer

      Account	Account Code	Debit ($)	Credit ($)
      Transfers Out/Benefits Paid	460000/MemberCode	250,000
      BHP Shares	77600/BHP.AX		50,000
      Property	77200/InvestmentCode		200,000

Transfer Cash

Create a new Bank Statement transaction:

From the Main Toolbar, go to Accounting.
Select Transaction list
Select New Transaction.
Select Bank Statement.

Record the following Bank Statement transaction:

Remove CGT effects from asset

Ensure that the Asset subject to CGT box is unticked for the assets.

1. Navigate to the securities list:
   

   From the Main Toolbar, go to Accounting.
   Select Chart of accounts from the list.

   
   
2. Search for the asset and click into it:
   
   

3. Click , untick the Asset subject to CGT box, and click Save:
   

4. Repeat this for other non cash assets being transferred

   Asset subject to CGT

   After completing the transfer process, be sure to restore the asset to its original CGT treatment by ticking the Asset subject to CGT box

Set price for manually revalued assets

Ensure that the property has a market value as at 24/06/2017.

This will not need to be done for the BHP shares due to daily revaluations.

Refer to the following article for how to set a price for an asset: Manually Revaluing Security Prices

Enter Journals for in-specie transfer

Enter a journal to records the in-specie transfer of assets

1. Navigate to the transaction entry screen
   

   From the Main Toolbar, go to Accounting.
   Select Transaction list from the list.
   Select the New Transaction.
   Select Journal.

   
   
2. Record the following transaction:
   
   Click  next to the 46000 entry and select the Type of Payment as Cashing Out / Benefits Paid
   
   Click  next to each of the non-cash asset disposal entries and ensure that there are no Capital Gains / Losses:
   
   Click