With this in mind, self-managed superfund operate in a very unique environment, they are tax-free
environment. However they are not immune to going bankrupt, from going
insolvent. If you’re self managed superfund, you are industry superfund, you
are retail fund, they are all susceptible to going insolvent, now it’s unlikely
they will because of the extremely conservative investment strategies that most
people follow for example it’s very difficult to gear or borrow money in a self
managed superfund and it’s very difficult to lend money to one of your members
or to rather a party to the members. So why in this case, in this case the bank
will go bankrupt as well and so can the insurance company, this is very true
and fro the mouth of a 5 year old, you can go bankrupt and lose your money and
that can happen for a superfund or self managed
superfund. However, what can one do if you are in a self managed
superfund and you go bankrupt and you are in a self superfund, in that case you
have to cease being the trustee or the director, now there are two ways to be
part or run and operate a self managed superfund; either in your own individual
name, so if you and your wife or you and your husband were in the self managed
superfund under your own name, both of you would have to be the two trustees
and both of you therefore will be the only two members, if you’ve opted to have
a company or corporate trustee, a trustee that would therefore have the
directors which are the members, so if you have three directors then you’ll
have those three directors as the members and only those three people as the
members, there is choice. However when people go bankrupt or you want to live
overseas, there is a bit of a problem and without any changes to the law
whatsoever the Australian Taxation Office for 6 months or over, less than 12 months ago gave us a free
kick, and said you are now able to do a special type of power of attorney which
allows you, you are going to do it before you go bankrupt which will allow you
have another person holding your attorney to look after your self managed
superfund, to have central management control while you are out of seat, while
you have unsound mind, while you are bankrupt, a huge opportunity you cannot
let go, so if you are close to going insolvent then you may want to consider
looking at doing these things. You will need to speak to a solicitor and get a
kit on how to get one these special types of enduring powers of attorney. You
cannot do it after you go insolvent because you can’t do that kind of attorney
generally if you are insolvent, so think about the future, if you don’t do it
then you’ll need to liquidate the position of the self managed superfund or
give the fund to an APRA regulated fund, which first thing they will do is liquidate
the position generally anyway. So self managed superfund’s are wonderful but
you need to control them yourself and you can now thanks to the ATO, self
managed superfund’s are wonderful but you have to keep the trustees pure and if
you cannot do it yourself because you have unsound mind, going overseas for
long periods of time or becoming insolvent or bankrupt then think about a
special enduring power of attorney.
It is important to speak to a licensed financial adviser before
making any financial decisions that could affect you and your family. Future Assist are licensed to provide
retirement planning advice. Speak to us today to arrange your free consultation
regarding your financial planning requirements or to discuss whether or not a self-managed superfund would be appropriate for meeting your retirement goals..
Please consider the above as general information. It is not
financial advice and has not been tailored to your personal financial position.
Making decisions regarding your superannuation and retirement planning are
major decisions that should not be taken lightly or without professional
consultation.
Speak to a licensed financial planner today: Call us on 1300 118 618
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