Self-Managed Super Funds

Self-Managed Super Funds

A Self-Managed Super Fund (SMSF) is a trust run for the sole purpose of providing retirement benefits to its members. In an SMSF you are responsible for making investment decisions for the fund and complying with the super and tax laws. 

There are a variety of disadvantages that come with setting up a SMSF. With an SMSF, it is generally illegal for anyone to benefit from the SMSF outside of its sole purpose for providing you with benefits on retirement. You may not be able to to access funds early or invest in a related business using your SMSF. The responsibility falls on you to ensure that the SMSF you set up is compliant with super and tax laws. There may be a range of sanctions for non-compliance, including disqualifications, penalties and tax consequences.

There are some advantages that come with setting up a SMSF. With an SMSF you have a wider range of investment options. You will also have a greater choice of what you want to invest in, providing that it adheres to the regulations of your SMSF. If you are a small business owner or self-employed, SMSF’s may be useful as you will be able to purchase commercial property with your SMSF. Establishing an SMSF will allow you to have more flexibility and control over your super. 

To set up an SMSF Superfund you will first need to select the structure of the superfund, and whether you elect to have an individual or corporate trustee. Once you have appointed a trustee and the assets your SMSF will hold, you must create the trust and register the SMSF. 

Industry Superannuation 

It is crucial to note that superannuation is not an asset of your Estate. In other words, superannuation does not form part of your Estate when you pass away. 

The only way to successfully ensure that your loved ones are able to access your superannuation upon your death is for you to make a binding death benefit nomination (BDBN). This nomination is done in writing to your superannuation provider, and usually involves filling out the BDBN form provided by your chosen superannuation organisation. 

Whilst superannuation is not an asset of your Estate, and as such cannot be distributed in accordance with your Will, it is useful to include a provision in the Will that clearly informs your Executor/s who your superannuation provider is and your wishes surrounding the distribution of your superannuation. This ensures that all assets in your name are accounted for in your Will. 

Green & Associates Solicitors Success Stories  

  • We have established SMSFs for a range of different circumstances;
  • We have successfully transferred international assets including business intellectual property into newly established domestic SMSFs;
  • We have created SMSFs for commercial property purchases with only 20% equity and leased back to a business owned and run by the same corporate trustee shareholders and trust beneficiaries

Speak to our experienced lawyers here at Green & Associates Solicitors for advice on setting up a SMSF. Contact us for a free consultation on (02) 8080 7585. We also provide in-house advice to companies on a range of matters, including:

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