As part of recent legislation changes as part of the investment strategy trustees / members are required to consider the holding of life insurance on behalf of members within the fund. There several advantages that may considered prior to undertaking this action. Even if you pay excess contributions tax, the benefits of the proceeds within…

Now that legislation requires trustees / members to consider the holding of life insurance on behalf of members within the fund, what are the disadvantages. The fund deed must allow the process and various different administrative aspects. There are no restrictions who can receive death benefits from a self managed superannuation fund. More documentation is…

What happens in the event a member dies and no Binding Death Benefit Nomination (BDBN)? Where a member dies and no BDBN is in place two options exist Where nomination was made. The trustee of the fund is obligated to administer the deceased member’s benefits in the best interests of the member. Normally, the trustee…

Referring to ATO ID 2012/79, trustees of a SMSF are required to return any contributions that exceed the fund capped contribution limit. Presently, this limit is $450,000 for a member under the age of 65 on 1 July or $150,000 over the age of 65. This limit applies separately to each contribution and not to…

The ATO has published taxpayer alert 2012/7 that focuses on investment decisions to acquire property using a limited recourse borrowing arrangement by the superannuation fund. In this alert the ATO points out where potential breaches may occur as per following: Failure to register title of assets in custodial trustee’s name. Signing of contact, before establishment…

What is an Anti-Detriment Benefit? Basically this benefit payment refunds the total amount of contributions tax paid by the SMSF member during their lifetime. Consider, Herb contributed to his super fund a total amount of $300,000. Tax rates on this contribution is 15% = $45,000 tax paid with a balance of $255,000 in the fund….

Recent research has found that many trustees are actively seeking outside advice to help them manage their retirement savings. This recent research found trustees were looking for specialist advice and were less interested in a one-stop-shop approach when it came to financial planning. The trustees were seeking more input/assistance with tax and compliance when it…

Investors are still not rushing back into shares, managed funds or property. Many are still cautious about current trends in particular overseas markets and debt bail outs of countries such as Greece and Spain. The December SMSF Investor Intentions Index reported that the concern level for investors for SMSF Investors is 6.4 out of 10,…

For the majority of cases a self managed super fund that has a a bank account or shares will not require a declaration of trust or acknowledgement of trust, as the asset title will clearly show it as being held on behalf by the trustees for the SMSF. There are certain assets where titles do…

To declare a trust relationship between the asset and trustees of a self managed superannuation fund two documents can be executed.The documents are similar but you should consider your circumstances and which document you need to execute. Declaration of Trust This is used where the trustees intends to acquire the property for and on behalf…