Estate Planning: How Does Your Self-Managed Superannuation Funds (SMSFs) Impact Your Will and Enduring Powers of Attorney (EPA)?

Follow by Email
Facebook
Pinterest
LinkedIn
Share

Your Will and Enduring Power of Attorney need to be prepared by your Estate Lawyer, taking into account your SMSF.

Document Review and Drafting of Amendments/New Documents

1. Constitution of the SMSF Trustee Company (SFTC):

    • Your Estate Lawyer will review the constitution to ensure it authorizes:
      • Your attorney under your EPA (who should also be the executor and trustee of your will) to act as a director of the SFTC if you lose capacity or pass away.
      • Your attorney, as executor and trustee of your estate, to own your shares in the SFTC after your death.
    • It’s important for your Estate Lawyer to review the directors of the SFTC, especially if your partner holds such a position, which could be problematic in the event of separation.

2. Trust Deed of SMSF:

    • Your Estate Lawyer will ensure that the Binding Death Benefit Nomination (BDBN) allows your Legal Personal Representative (LPR) to receive Superannuation Death Benefit (SDB) payments to distribute to predetermined eligible beneficiaries.
    • If you want to protect your SMSF entitlements from claims by your partner in case of separation or divorce, discuss the advisability of a Binding Financial Agreement with your Estate Lawyer.

3. Will and EPA:

    • The wording of both documents needs to ensure:
      • The administration of the SFTC can continue during your life or after your death.
      • The SMSF complies with ATO provisions to avoid the need to sell investments, which can be costly.
      • Your will provides for changes in the shareholding and directorships of the SFTC in favor of your executor.
      • Your will allows your executor to receive SDB payments directly for distribution to beneficiaries, even if there’s a conflict of interest when performing their role.
      • Your attorney accepts the role of acting as director of the SFTC during your life if you lose capacity and is aware of the terms of the Trust Deed of the SMSF.

Professional legal costs involve reviewing SFTC and SMSF documents and drafting amendments to them, as well as creating new wills and EPAs.

Get Started with Estate Planning Today!

Ensure your estate is managed according to your wishes by addressing your SMSF in your will and EPA. Contact Jim Wilson, an experienced estate planning lawyer, for a chat today. He will not only come to you, but also guide you through the process and help secure your financial future.