9 Straightforward Steps To Set Up An SMSF Account
Great! You have decided to enter into the club of 1 million+ Aussies
with an SMSF account.
Having a Self Managed Super Fund is an individually and monetarily
rewarding experience for you if you have done its setup correctly. Attention to
every detail will safeguard you from getting penalised and help you save your
time in the long run.
As per the website of the Australia Taxation Office, here are nine
simple tips for setting up a Self Managed Super Fund account:
1. Appoint professionals to assist you
You can employee a few professionals to help you in setting up and
managing your fund. With their support, you can be sure that your fund is run
and managed properly. You can think about appointing an accountant, a fund
administrator, a legal practitioner, a financial adviser, an auditor, and a tax
agent.
2. Select a corporate or individual trustee
You are free to select a structure as per your wish – a corporate
trustee and an individual trustee. Get in touch with an expert to discuss the
differences between these two structures on the base of
·
Requirements of member
and trustee
·
Cost
·
Ownership of fund
assets
·
Separation of assets
·
Penalties
·
Succession
3. Employ your
trustees
The members of an SMSF trust must be directors of corporate trustee or
personal trustees. Avoid being a member of your Self Managed Super Fund if you
are not eligible for becoming the director or trustee. New funds typically
appoint directors or trustees under the trust deed fund. Ensure that the people
are going to be directors of trustees:
·
Are suitable for
becoming a director or trustee
·
Have a sound comprehension
of the meaning of a director or trustee
4. Form the trust and trust deed
A trust is an agreement under which a company or individual collects
assets/funds. A self managed super fund is a different type of fund, which aims
to facilitate its members to have retirement benefits. For the creation of a
trust you need directors/trustees, governing rules, assets, and identifiable
beneficiaries. A drafted trust deed binds you with its rules & regulations.
5. Ensure your fund is an Australian super fund
To receive tax concession, you need to have an Australian super fund.
Get in touch with the officers of the ATO to know the terms & conditions
associated with it.
6. Register your fund and get an ABN
For making it compliable, you need to get your Self Managed Super Fund
registered with the Australian Taxation Office. Submit all the respective
documents and get approval and an Australian Business Number.
7. Open a bank account
You must have a bank account in the name of your SMSF trust and you need
to keep it apart from your personal account. With a bank account for your super
fund, receiving and contributing funds to this trust will be more comfortable
for you.
8. Have an electronic service address
For receiving of funds from trustees and members, your Self Managed
Super Fund should be capable of receiving contributions and related data
electronically. For this, you can open an email with the name of your trust.
9. Make an exit plan
At the time of setting up a super fund, you should be ready for the
future. You should have a robust strategy for you exit if anything bad happens
to your trust. The bad thing can be the death of a trustee, poor relationships
with other trustees, or a severe illness, making a person unable to actively
participate.
Conclusion
A Self Managed Super Fund is a beneficial fund for availing retirement
benefits. Its setting up is a tricky job, which requires professional
consultation. With the support of an SMSF accountant or expert, you can
easily carry out all the associated works for a better fund.
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