Setting up and running a SMSF
There are a number of one-off steps in the set up process for a fund. These are:
After this process is completed, the next step is to formulate the fund objectives and investment strategy. The superannuation fund is then in a position to start investing their fund monies.
During the financial year all income should be banked and expenses paid.
After the end of the financial year, the Trustees need to arrange to:
If you elect to use the administration services of The Alan Skerritt Consultancy we can take most of the hassles away from running your SMSF. You still need to formulate and implement your investment strategy. But we can look after the daily tasks associated with managing your SMSF such as banking of dividends etc. We provide regular reporting, and, arrange the tax return and audit.
We are an independent family owned business that has specialised in Self Managed Superannuation (SMSF) for more than 30 years..
Insurance within a SMSF
It is possible for life insurance and Total and Permanent Disability (TPD) Insurance to be held within a SMSF. The owner of the policy must be the superannuation fund. The premium for this insurance is then paid by the Superannuation fund and is a deductible expense of the fund.
It is also possible for income protection cover to be held by a SMSF. The general rule is that a premium deduction is permitted where the benefit is an income stream due to a person’s inability to perform normal employment duties, and the benefit in payable for no longer than 2 years.
However, provided certain conditions are met, these benefits may potentially be paid for a longer period, not exceeding the period of the incapacity.
Whilst there are benefits of holding insurance in Superannuation, there may be taxation consequences if a TDP claim is made to a member under age 60, or a death benefit is paid to a non-dependant. It is important to seek advice on this before entering any insurance contracts.
If you currently have insurance with your Superannuation and you elect to set up a new SMSF and roll your accumulated superannuation to this fund, It is important to know that your current insurance will cease on rolling the entire balance to your SMSF. You should consider replacing this insurance before you commence a rollover which will cause the insurance to be terminated.
The Alan Skerritt Consultancy
Windsor Holdings Pty Ltd (ACN 010 018 041 ABN 12 862 040 559)
(Incorporated in Queensland) Trustee
Nothing in this website should be considered personal advice. The information is of a general nature and does not consider your personal needs and objectives or your financial situation.