Cheap doesn't mean deficient when it comes to trust deeds
A specialist self-managed superannuation fund (SMSF) trust deed provider has claimed it is wrong to suggest that just because some deed products are "cheap" they are in some way deficient.
Trustdeed.com.au founder and director Manoj Abichandani claimed recent news reports critical of some cheaper trust deed document products might have led advisers to believe they had to pay top dollar to access acceptable quality products for their clients when this was not necessarily the case.
"We agree that there are fundamental flaws in some deeds, but sweeping generalisations about "cheap" deeds not properly addressing areas such as payment of death benefits and voting rights do a disservice to the whole sector," Abichandani claimed.
"Price is not the only factor for determining the quality of an SMSF deed, just as a low price tag doesn't always mean a poor product or vice versa," he said.
"SMSF advisers should be looking at whether a deed is descriptive and provides the amount of depth and detail needed to ensure trustees and members are well-informed and empowered in any legal situation, including death."
Abichandani said over 100 deed providers were now active in the Australian market and he did not consider it fair that those at the "discount" end of the market were all tarnished with the same brush.
Originally published by SMSF Essentials.
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