For many people their SMSF will make up the largest part of their wealth as they move into their later years.
This means just as much effort needs to be invested when it comes to ensuring SMSF assets go to who you want them to on death as other personally owned or business assets.
In this workshop we will cover:
- Components of a solid SMSF estate plan
- Your personal Will does not cover your SMSF!
- Tax on death and how to avoid it
- Maximising the legacy you leave for your family
- How to avoid estate disputes
- Choosing the right executors
- Dealing with blended families
- Should your Will include provisions for a testamentary trust?
- Importance of Enduring Powers of Attorneys
The presentation content will cover approximately 40 minutes and we will have plenty of time for any questions and discussion on key areas.
A recent statistic from Investment Trends caught my eye: 40 per cent of SMSF trustees who stopped using an accountant in 2014 cited lack of access to a wider range of advice services and expertise. Is this because accountants don’t have the expertise or to deliver the right SMSF advice to trustees, or are they simply failing to communicate it?
Australia has relatively strong investor protection laws, and although they don’t always meet the public’s expectations, they typically ensure investors have access to appropriate disclosures and protection mechanisms when they invest or take financial advice. However there are certain exemptions (namely the sophisticated investor exemption) available to companies that issue investments or provide advice and SMSF trustees can unknowing be placed into a situation where they can’t access these protections.
The following article on using an SMSF unit trust to buy property was written by Daniel Butler of DBA Lawyers and published in the Australian Financial Review on September 26; 2015. The original article can be found here: Beware when using a unit trust to buy property in your SMSF (AFR subscription may be required).
SMSF unit trusts are popular structures by which to hold property and other investments.
They are particularly popular for self-managed superannuation funds (‘SMSF’) that invest in real estate. Using such a structure, one or more SMSFs, as well as other investors, can join forces to acquire an investment property, potentially giving each investor access to a better property with more upside potential than they might otherwise have.
Working within the SMSF unit trust rules
However, an SMSF must be careful to ensure it complies with a raft of superannuation rules.
An SMSF is not permitted to invest more than 5 per cent in a related trust,
More and more Australians are taking control of their financial lives and accessing wider investment choice via a self-managed super fund (SMSF), however this is an area many of us still don’t fully understand.
Webinar: self-managed super (SMSF) – is it right for you?
In this webinar Chloe Ward, SMSF Specialist Manager from Superfund Partners will discuss:
• How to set up a SMSF
• Your ongoing obligations and responsibilities
• Investment choices
• Strategies you can use • Initial and ongoing costs involved
A lot of what you hear about SMSFs in the media or from friends and family can be a long way from the truth. We will separate fact from fiction and answer the question: Is a SMSF really ‘self-managed’?
In this webinar, you will walk away with a good understanding of:
• Overview of the roles and responsibilities of SMSF trustees
• Administration requirements of SMSFs
• Main investment restrictions applicable to SMSFs
• Whether an SMSF is the right choice for you
The webinar is being held on Wednesday 7th of October at 12.00pm AEST (1.00pm SYD/MEL)
Superfund Partners will also be holding a SMSF e-workshop on October 19th,
There is currently a transition period in place for new rules that apply to any artwork or collectibles held by an SMSF, however this transition period is coming to an end at1 July 2016.
As a result of the Cooper in SMSFs review, rule changes have been implemented in relation to the requirements for the ownership of collectible and personal use assets by SMSFs. These rules will apply to any specified asset acquired after 1 July 2011 and will also apply to assets owned prior to this date with effect from 1 July 2016.
What assets are considered Collectibles and Personal Use Assets?
The types of assets that are covered by these requirements are outlined in the SIS Act and the rules pertaining to the ownership and usage are covered in SIS regulations. Collectibles and Personal Use Assets include the following:
- artwork (defined as painting, sculpture, drawing, engraving, photograph including reproductions)
- coins or medallions
- postage stamps or first day covers
- rare folios,
Since self-managed super funds came into existence accountants have been the number one source of advice when it comes to their set-up up and operation. However the actual advice accountants have legally been allowed to give SMSF trustees has always been very limited, and from 1 July 2016 will get even tighter.
So what does this mean for SMSF trustees – especially those of us who are self-directed?
SMSF advice your accountant can (and can’t) give
In general any person or business who advises or deals in financial products or services needs to have an Australian Financial Services License (AFSL). When it comes to SMSFs – most services and advice will be considered financial advice unless it’s specifically related to:
- Taxation advice or services
- Accounting and administration advice or services
- Information regarding compliance with laws and regulations relating to SMSFs
Although the above seems comprehensive, the list is actually quite narrow and excludes advice that are the most important and valuable to us as SMSF trustees!
“If you don’t have international shares you are missing out on 98% of the world’s equity opportunities!”
So goes the catch-cry of international share fund managers.
Popular media often scolds trustees of SMSF’s for being too domestically focused and missing out on the opportunities that are available in international shares.
And to help the do it yourself market to access international shares there are now a preponderance of Exchange Traded Funds (ETF’s) and Listed Investment Companies (LIC’s) that now make it easy for individual investors and SMSF’s to access international exposure through their online trading accounts.
Performances over the twelve months to 30 June 2015 certainly make DIY investors sit up and take notice of the argument why you shouldn’t ignore international share markets.
The MSCI World Index priced in Australian dollars returned 25.18% for the year to 30 June. The three year performance is 26.12%. For comparison, the Australian ASX200 Accumulation index returned 5.68% for the year,
Superfund Partners is relocating our Broadbeach office from the 31st of August 2015 to 10 Short Street Southport.
Why the move?
Superfund Partners started with two desks back in 2010 and due to strong growth and the merger with My Super Advisor we moved to our current stand-alone Broadbeach office in 2013.
We now have an opportunity to combine resources with our parent company Quill (who will be located within the same building) while still maintaining our own brand and independence – the best of both worlds. By sharing overheads we can better combat the rising cost of doing business and continue to provide our services at an appropriate price point.
Superfund Partners has unashamedly embraced cloud technology since our inception. As we’ve grown so has our need for a robust internet infrastructure. By moving into the CBD of Southport, we have access to faster, higher capacity broadband which will ensure we can continue to perform work efficiently for our clients.
We always recommend our clients use a special purpose trustee company for their SMSF. Once the trustee company is set up, the ongoing maintenance to look after it is relatively simple, but very costly if you get it wrong as the Australian Securities & Investments Commission (ASIC) can levy hard penalties that are difficult – if not impossible – to get remitted.
In this article we will show you how to make looking after your SMSF trustee company easy and save you money at the same time.
ASIC late fees
Although the annual review fee for special purpose trustee companies is relatively low ($46 as of 1 July 2015), if a client doesn’t pay on time, the late payment fees ASIC applies are quite onerous:
- Up to one month late – $75
- More than one month – $312
So how can you ensure you avoid these hefty fees, as well as simplifying the administration of your SMSF trustee company?