Keeping it in the family with self managed super

Self managed super funds have become a popular way for Australians to build their retirement savings.

In fact they’re now the fastest growing part of the superannuation market, with more than one million of us being members of an SMSF. ^

According to Charles Choong, Authorised Representative of Professional Investment Services, a self managed super fund is an effective way to accumulate wealth and to transfer this onto future generations.

“There is no legal time limit on how long an SMSF can last,” says Charles, “As long as the Trust Deed is kept up to date, it can essentially keep going forever.”

A self-managed super fund allows up to four people to pool their super and take responsibility for managing it as trustees, with the sole purpose of providing benefits to its members on their retirement.

Under the Super Industry Supervision (SIS) Act, an SMSF can have a company as the trustee of the fund. This is also known as a corporate trustee.

When it comes to securing your family’s estate, and succession planning considerations, appointing a corporate trustee can have some advantages.

“With a corporate trustee, control of an SMSF and its assets is more certain in the event of the death or incapacity of a member,” says Charles.

“A fund with individual trustees is not likely to continue to operate as usual when changes in trustees occur, unless an appropriate succession plan has been prepared.

“Also, if an individual trustee is removed or another one added to your SMSF, you must change the titles of the fund’s assets. This can be costly and time-consuming. Recording and registering assets can be simpler, particularly for membership changes, with a corporate trustee.

“While there is a greater up-front cost with establishing a corporate trustee, there can be long-term benefits which outweigh those costs, especially if you are focussed on future generations,” explains Charles.

If you’re already a member of an SMSF, or you’re simply interested in whether an SMSF could work for you and your family, some sound advice from a SMSF-accredited financial adviser is a good place to start.

To discuss your needs, book an appointment with Charles Choong on 03 9654 9886, or you can send an email to firstpacificfs@gmail.com for more information.

Important information and disclaimer

This publication has been prepared by Charles Choong (ARN 244 731) is an Authorised Representative of Professional Investment Services (ABN 11 074 608 558), Australian Financial Services Licence 234 951

The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Professional Investment Services Pty Ltd (PIS) Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither PIS nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.

^ Self-managed super funds: A statistical overview 2012-13, Australian Taxation Office.