Significant changes to SMSFs legislation on June 30 make the updates to trust deeds imperative.
NowInfinity is urging advisers to review and update their clients’ trust deeds now in order to meet the new super reforms that will be effective from 1 July 2017.
NowInfinity CEO, Amreeta Abbott, says significant changes to self-managed superannuation funds (SMSF)s make the update imperative. “Not since 2007 has Australia seen such wide-sweeping changes to superannuation, so now is the time for advisers with SMSF clients to review and update SMSF trust deeds,” she says.
Ms Abbott says it is imperative that advisers and accountants understand how any regulatory changes must be implemented into the SMSF’s governing rules which reside in the SMSF trust deed and its ancillary documents – that is, investment strategy, pension documents, etc.
“It cannot be assumed that if a transaction is allowable under the legislation that it will be allowable under the trust deed,” she says. “To make that assumption can be a very expensive process especially with the trustee administrative penalties and charges.”
The trust deed is the most critical document in terms of stipulating the governing rules of an SMSF and as such, NowInfinity has launched a new comprehensive SMSF trust deed that not only accommodates all the new super reforms but also adds a strong focus on the estate planning protocols and mechanics available to the fund.
It accommodates all the new super reforms (including but not limited to):
- Introduction and administration of the $1.6 million superannuation transfer balance cap
- Changes to the concessional and non-concessional contribution caps
- Allowing catch up concessional contributions
- Changes to transition to retirement income streams (TRIS)
- Allowing for the CGT transitional provisions
In relation to estate planning some of the new key features are as follows:
Certainty is provided around the priority between pension interests and death benefits. This allows members to create a wide variety of estate planning priorities during lifetime and through their estate.
All decisions in relation to interpretation and application of death benefit processing is reserved to the member’s chosen Alternate Decision Maker, it is not left to the discretion of the balance of membership. The Alternate Decision Maker is a person or persons nominated to act as the Legal Personal Representative of a member in accordance with the specific rule of the deed.
A comprehensive and cascading binding death benefit nomination (BDBN) form is included which gives advisers flexibility and certainty.
Some of the many other features of the deed include wide latitude in membership classification, with the ability to limit membership to criteria identified by founding members. “For example, membership can be limited for a specific period of time, happening of an event, or even belonging to a family bloodline pool,” Ms Abbott says.
“The NowInfinity portal provides an easy and efficient way to help SMSF clients stay compliant and be ready to embrace the new world of superannuation with nothing more than just a couple mouse clicks.”
