DEATH OF A SMSF MEMBER

After performing many SMSF audits over the years, I have come to realize some recent trends that Accountants, Trustees and SMSF Auditors need to be aware.

In this article I will talk about “death”.  It is inevitable and all of us will face death sooner or later whether we like it or not.  You might be asking “what does death got to do with SMSF”.  Well, quite a lot in fact.  Recently I have come across more and more SMSF experienced death to its Trustee or member. For the remaining Trustee, who are NOT aware and NOT on top of their DIY Super Funds, it will be a nightmare to figure out what has happened and what needs to be done to ensure their Self Managed Super Funds are still in compliance. 

As a SMSF Audit Specialist, seeing such events unfolding and trying to assist the other remaining Trustee figure out what has happened was disheartening.  From my perspective, I would definitely NOT want my wife and family to go through this.  Conventional wisdom, suggest that all Trustees need to take their responsibilities seriously.  Trustees need to know what is happening to their SMSF, and at the same time plan for the unexpected future. To that end the ATO has provided a guide to assist Trustees in discharging their obligations. So to all Trustees, you need to get on top of your Self Managed Superannuation Fund.  After all the ATO has provided you with a tax incentive vehicle (through the use of Self Managed Superannuation Fund) to lower your overall personal tax bill. It would be appropriate that all Trustees start asking questions and being responsible for their Self Managed Superannuation Fund.

This article is not a financial advice, and author is Not a financial advisor or tax agent.  Please solicit appropriate advise from professionals before making any financial decisions.