Why have a Self Managed Super Fund?

April 2020

If managed properly, a Self-Managed Super Fund (SMSF) can be one of the most tax effective vehicles you can use to build and pass on wealth to your beneficiaries.

In the following, we examine some of the most common reasons that people establish SMSFs:

Control & Flexibility

Trustees of a SMSF have total control over the choice of investments they hold in the fund and how the fund is operated.

There is increased flexibility in a SMSF to change the investment mix and structure of the fund and implement strategies to save tax and grow your super savings, both for yourself & beneficiaries.

Broader Investment Choices

SMSFs offer a wider range of investment options when compared to other super funds.

Trustees can potentially invest in direct property such as residential and commercial property, unlisted assets, which generally cannot occur in other superannuation funds.

Greater Transparency

A SMSF provides you with complete visibility over your fund’s investments, their performance and tax treatment, which can then enable you to make informed investment decisions.

Flexible Estate Planning & Tax Minimisation Strategies

There is greater flexibility in a SMSF to implement tailored estate planning and tax minimisation strategies to ensure that your super benefits are passed on to the right people at the right time upon your death and in the most tax-effective manner.

Advantages for Business Owners

Super rules allow members to hold their business premises (e.g. medical premises) within their SMSF for tax- effectiveness, asset protection and estate planning purposes.

If you have any SMSF estate planning queries please contact the SMSF team.

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Topics: Superannuation

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