Self Managed Superannuation Fund Deed Upgrade
The superannuation environment is constantly changing and to ensure your deeds are compliant with the current legislation.
As a Trustee it is sensible for you to consider updating your SMSF deed to help ensure the SMSF remains compliant.
It can be dangerous for a SMSF to have an old deed with irrelevant and invalid clauses. An older deed can increase the risk that you might exercise a power that the law no longer allows — for example, to set up a new pension income stream, could be in breach of current superannuation law and cause your SMSF to lose its tax advantage status.
Recent Self Managed Superannuation Fund Changes
- 7 July 2010 changes to SMSF borrowing law — changes include “instalment warrant borrowing” is now known as “limited recourse borrowing”. In July 2010, a number of changes were made to the law about SMSF borrowing. The deed now reflects these changes.
- 4 May 2009 Deed allows Death Benefit Agreements – Members can now use binding Death Benefit Agreements that do not lapse after three years the agreements bind the trustees until the member revokes or changes the Agreement.
- 31 January 2008 SMSFs borrowing to acquire assets – Deed now specifically mentions SMSF limited recourse borrowing as allowed by law – again, this will help trustees who apply for a loan to acquire assets for their SMSF.
- 21 September 2007 “Better Super” major changes – “Better Super” changes for the major legal reform of SMSFs implemented on 1 July 2007 and 20 September 2007.
- 18 October 2006 Obsolete pensions removed – Specific pension payment clauses removed as the pension types are now obsolete.
It is prudent for you to consider the implications of these changes for the benefit of the SMSF’s trustee(s) and member(s).