Warning to ageing SMSF trustees
With the first wave of self-managed superannuation fund (SMSF) trustees moving into their 80s, wealth advisory firm William Buck is urging them to think about succession planning.
William Buck wealth advisory group head Chris Kennedy said that as people got older they became less interested in their trustee responsibilities and there were increasing cases where trustees were less capable of carrying out their responsibilities.
He said that it was in these circumstances that SMSF trustees needed to put in place an exit or succession strategy to protect against unplanned intellectual impairment or simply a loss of interest in managing such large amounts of money.
"There are a range of options for Trustees who no longer want to run a SMSF, but the important point is they need to give some thought to what they want while they have the ability and the motivation to do so," Kennedy said.
"Trustees may want to hand back the decision-making responsibility for their fund by reverting back to a retail fund or wrap platform, or alternatively hand over to a professional corporate trustee," he said.
Originally published by SMSF Essentials.
AUTHOR
Staff Writer
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
