Even when you're setting up your SMSF you need to consider what happens when your SMSF ends, or 'winds up'.
Sometimes SMSFs become difficult to manage because of an unexpected event such as:
- a relationship breakdown between the trustees
- an illness or accident that leaves a trustee incapacitated (and unable to perform their role as a trustee)
- a trustee dies.
Having an exit strategy may reduce the impact of 'unexpected' events. As part of your exit strategy, some of the things you should consider are:
- ensure all trustees can access the SMSF's records and electronic transaction accounts
- include specific rules in your fund’s trust deed that are triggered by events that could otherwise lead to the fund becoming unmanageable
- members to make binding death benefit nominations (and renew them every three years)
- encourage members to appoint an enduring power of attorney
- the likely costs involved in winding up an SMSF.
Media: [SMSF planning for the unexpected]
https://tv.ato.gov.au/ato-tv/media?v=bd1bdiubfi6z97External Link (Duration: 2:13)
See also:Even when you're setting up your SMSF you need to consider what happens when your SMSF ends, or 'winds up'. Consider including specific wind-up clauses in your fund’s trust deed.