Essentially the Trust Deed of an SMSF is the life and soul of an SMSF, a bit like a bible in relation to what you can or can’t do. It seems that in today’s world everyone and everything is having “work” done to enhance a multitude of purposes, a nip, tuck or boost here or there, so why not your SMSF deed. In deed!
Reviewing your SMSF trust deed on a regular basis is advantageous to the members and/or their beneficiaries or even, as in some recent cases, the member’s intended beneficiaries. For example the deed can prevail, even over a binding death benefit nomination, if the deed fails to say so and the possibility of some evil remaining trustee dashing off with the cash intended for someone else is a possibility.
Apart from legislative change, one of the most relevant issues that will impact on the up to date status of the deed of an SMSF is case law. Hence the possibility of regular changes being required is likely to increase as superannuation now enters it’s maturity stage and more and more superannuation litigation is brought before the courts.
While in the process of reviewing the deed it may be an ideal opportunity to consider appointing a corporate trustee. A corporate trustee can have many advantages – however, this is another topic altogether. But if you would like to discuss, please call your accountant at Optima Partners.
Liz Gibbs
SMSF Manager – OPTIMA PARTNERS
