Helpful tips and advice on how to get the most out of your Self Managed Super Fund.

Christmas Strategy No 1 - Family Super first not SMSF

Christmas is a time when thoughts turn to family. Yet many SMSFs are run as simple investment vehicles with no thought of how a family can benefit from aggregating their super balances into a powerful Family Super Fund. For example, rather than let a SMSF die when Mum and Dad depart, give the children a legacy with tax losses courtesy of an anti-detriment payment. Or start a SMSF property portfolio with the use of borrowings and the younger member's on-going contributions plus rent to pay the property off for the benefit of the fund. Think Family Super not SMSF!

Christmas Strategy No 2 - Save on SMSF Death Duties

The ATO ruling on pensions says that a SMSF pension stops when the pension member dies - meaning that any lump sum payment to a spouse will suffer capital gains tax in the fund - rather than being tax free. The simple solution is to convert the SMSF pension to an auto-reversionary pension resulting in the pension carrying on past death and saving CGT death duties. To do this easily - roll back an existing pension and recommence a new pension with an appropriate auto-reversionary. But do it before Christmas to provide cover just in case.

Christmas Strategy No 3 - Claim your sponsored ASMA membership

The SMSF Members Association has more than 1,200 members and is growing strongly to be the "Voice of SMSF Members" with an upcoming education, networking and member discount offer site to be released in March 2012. If you would like to become part of this important not for profit organisation to grow and protect your SMSF member benefits - claim your sponsored membership prior to 25 December 2011 by contacting Mark at the contact details below. This will provide your fund with membership to 31 December 2012 for no cost - a gift of $175.

Christmas Strategy No 4 - Create a SMSF Will

The SMSF Will is now the readily accepted method for distributing superannuation death benefits with certainty and security - outside of the realm of the various States dependants and family provisions actions. However too many SMSF members are relying on binding death benefit nominations that may be ineffective according to the ATO and the courts - see Donovan v Donovan [2009] QSC 26. The key is the trust deed - importantly our trust deed provides for both SMSF Wills and auto-reversionary pensions.

Christmas Strategy No 5 - Look for that SMSF Property Investment

Christmas usually means travel to a vacation hotspot such as the Gold or Sunshine Coasts in Qld. It also means, for some at least, a time to invest in property. If that is on your mind, there is no better investment home than the Family Super Fund and more importantly using the benefits of SMSF borrowing and the ATO ruling allowing improvements to property in a SMSF. However the property in the fund cannot be used by members or related parties so give consideration to acquiring a pooled property - allowing you to stay in another property on site - just not the Fund's property.

If you would like more information on any of the above strategies, including how to create a SMSF Will, email Superannuation Principal Mark Geldens for more details.