Self Managed Superannuation Funds (SMSF)

With the ageing population and issues such as dementia, consideration should be given by members of SMSF to put an enduring power of attorney (financial) in place. If a trustee/member of a SMSF is under a legal disability, a person who holds their enduring power of attorney may take their place as trustee or as a director, in the case of corporate trustees, because the attorney is deemed to be their legal personal representative. In most cases, the trust deed specifically allows the substitution.

WARNING: If there is no person who holds an enduring power of attorney of a trustee/member who suffers a legal disability, the fund will cease to be a SMSF and the Tax Office will become the regulator of the fund until a registrable superannuation entity licensee is appointed as trustee. If the fund loses it’s status as a SMSF because of the lack of a trustee it will be taxed at the highest marginal rate as a non-complying fund.

For further information or assistance please do not hesitate to contact Trevor Kuhle.