Why do you need a Declaration of Trust?
SIS regulation 4.09A requires the trustees of a SMSF to keep the assets and money of the superannuation fund seperate from any assets or money held by the trustees personally.
In NAT 2005/37 ATO media release, warns that all assets of a self managed superannuation fund must be recorded to show correct ownership by the fund, this generally means that assets must be held in the name of the trustees ” on behalf of the fund”.
Trustees must be aware that under Section 34 of the SIS act that a person who intentionally or recklessly contravenes this standard is guilty of an offence punishable on conviction by a fine not exceeding 100 penalty units = $11,000 ($17,500 under new changes to be introduced).
Most important, is that trustees under Section 52(2)(2)(d) of SIS Act are required to keep benefits and other assets seperate from their own assets. It is up to the trustees of the SMSF to ensure the assets of the self managed superannuation fund are held in a legally recognised ownership arrangement.
REMEMBER, the above are issues that auditors focus on when it comes to the audit of a SMSF. Our audits for funds start from $300 and follow a comprehensive audit plan.
DISCLAIMER: The above is general advice only, you should not act on this advice without consulting a professional adviser to discuss your personal circumstances.