When a SMSF is no longer an option

What do you do when a SMSF is no longer an option?

This is a situation that confronts those with their own self managed super fund (SMSF) when they:-

• Lose mental capacity,
• Otherwise no longer have the time or inclination to fulfil all SMSF trustee obligations,
• Have become disqualified from continuing to act as a SMSF trustee (after having become bankrupt or convicted of an act of dishonesty), or
• Are about to move overseas for more than two years and become a non-resident of Australia tax purposes.

There are a couple of options. One commonly unknown option is to replace the current members as trustee(s) either in their own names or as a director of a corporate trustee and replace them/it with an APRA approved trustee.  One key benefit of this option is that the super fund has not been deemed to dispose of its assets and therefore does not crystallise any capital gains tax liability.

In addition to this important taxation consideration, there are some other important options, advantages and disadvantages. You can discuss these financial planning considerations with a financial planner.

At MRS, we will spend today planning for your success tomorrow.

At MRS, we will spend today planning for your success.