Only a few months ago, the Government was proposing that trustees of self-managed superannuation funds (SMSFs) were to be subject to a retirement income covenant, which would require the trustee to have a strategy that outlines how the trustees plan to assist their members to balance three objectives; namely maximising their retirement income, managing risks and having flexibility to access super savings.
superannuation
Has your SMSF become a Zombie?
Do you have a Self-Managed Superannuation Fund (SMSF) with a balance under $500,000, are not yet retired but some unexpected life events have halted your ability to contribute more to your SMSF?
Superannuation member benefit vs death benefit
When there is no tax dependent to receive a member’s superannuation death benefits tax-free, a potential tax saving strategy is to withdraw their entire super benefits prior to their death. The money then becomes their ‘personal asset’ which can be distributed tax-free to any non-tax-dependants such as the member’s independent adult children.
Must SMSF BDBNs comply with the 2 witness and 3-year validity rules?
There has been a continuing legal controversy as to whether Binding Death Benefit Nominations (BDBNs) for SMSFs must, in order to be valid, comply with both the 2 independent witness rule and 3-year validity period rules (2 witness & 3-year rules).
Mutual funds – they’re on their way
As indicated in the recent May Budget, the Government has decided to re-commence the project to introduce mutual funds. The Government intends that the legislative regime permitting mutual funds will have a start date of 1 July 2022.
Interdependency relationship: not a catch-all to be a dependant
Unlike estates where anyone can inherit, not everyone can be considered a death benefit dependant in superannuation. Jonathan See, Solicitor, Townsends Lawyers, discusses.
What to consider when updating SMSF trust deed
If your trust deed was prepared quite some time ago, it may be time to update the governing rules of your SMSF trust deed. Doing so means that you can have peace of mind in knowing that the rules are current.
SMSFs transacting with former spouse, cousins or friends
A question we get from time to time is whether the trustee(s) of an SMSF can enter into transactions such as a loan, lease or another type with a fund member’s former spouse. In this article, we will consider a number of compliance issues with SMSF transactions involving a former spouse.