Why do I need to update my SMSF Deed?
The purpose of a Self Managed Superannuation Deed (Deed) is to provide retirement benefits to its members. It is a legal document that sets out the rules for establishing and operating a Self Managed Superannuation Fund (SMSF). The SMSF is governed by the Deed and superannuation laws. The Deed is not a “sign and forget” document, therefore if the Deed is not up to date, it may be restricted on executing your specific requests or transactions while the SMSF is in operation.
When should I update my SMSF Deed?
The Australian Taxation Office suggests that an SMSF Deed should be regularly reviewed and updated as necessary. The general industry recommendation is about every five years. However, if there is an upcoming major event about to occur in your fund, you should have the Deed reviewed sooner to ensure the Deed’s clauses cater for the event.
What circumstances would prompt an update?
There are many examples of circumstances or events where the clauses of an SMSF Deed may need to be updated. Here are some common prompts;
- Superannuation law changes
- Commencing a pension
- Borrowing arrangement
- Death Benefit Nominations
- Incapacity of members
- Estate planning
How do I update my SMSF Deed?
As the SMSF Deed is a legal document the review and update should be handled by a reputable Lawyer that specialises in Self Managed Superannuation Funds and superannuation law. You can request the Lawyers or the company (non legal) that created the SMSF Deed to conduct the update.
Documentation prepared for the update will require execution by all Trustees.
Should you require further information about updating your SMSF Deed, contact Concise Super on 03 9838 3055.
This information is for general information only and does not constitute financial advice or take into account your personal needs, objectives and financial situation. Before making any decisions, we recommend you seek professional advice.
April 2018 ~ Kerrie Salvatore, Concise Super
© Concise Super 2018