Masterclass – SMSF – Winding Up Your Self-Managed Super Fund – What To Consider?

 

Masterclass – SMSF – Winding Up Your Self-Managed Super Fund – What To Consider?

SMSF – Winding Up Your Self-Managed Super Fund – What To Consider?

There can be many reasons to close or wind-up your SMSF – but if a change of trustee is the issue, there may be strategies you can apply to keep the SMSF running, as we wrote in April. However if closing is the necessity such as one client who was a  single-member fund with himself as director of a Corporate Trustee and had passed away before he was 60, wind-up is necessary when the trustee of the estate and family request it.

There can be several reasons to wind up your SMSF:

  • Members tired of the responsibilities
  • Assets reduced that it is no longer cost effective
  • Key member becomes non-resident for Australian taxation purposes
  • Inability to run the fund due to health reasons of a key member

A number of tasks need careful management, and is an involved process.

The first place to start is to check all prior year tax and compliance obligations have been met. Then check the trust deed for any specific requirements. Then all members should sign a minute/resolution that they all agree to close the fund and the reasons. Then members need to write to the fund stating whether the benefits are to be rolled into another super fund or paid as a lump sum (if the correct preservation and release conditions apply).

Next – draft financial statements are prepared to determine member balances/benefits, factoring in future expenses such as accounting, audit, tax, capital gains, levies and expected income. Assets need to be sold: Occasionally “in-specie” (other than money) transfers can occur. Relevant change of ownership documents may need to be prepared.

The final annual return is lodged after assets sold, member benefits paid and audit reports received. The SMSF then notifies the ATO in writing within 28 days, and wait for the ATO to issue written confirmation of ABN cancellation and recording the fund closure.

With corporate trustees, the directors must decide if the company should remain running or be would up. Even if not trading a company remains registered and subject to annual review fees. There are two ways to close down (deregister) the company – apply to ASIC to voluntarily deregister, or a member’s voluntary wind-up initiated by company members. Best to seek assistance. Books must be kept for three years.

Also refer to the ATO Publication number 8107 “Winding up a self-managed super fund“

Interested to know what self-managed super (SMSF) is all about, how to get setup FREE and if it is for you? Come to a FREE seminar with bonuses, run every month Self Managed Super Fund Roadmap (all you need to know) for the next monthly event, see 1 SMSF – FREE Seminars or our other seminars above – Navigate Shares and Property Boost or call us 0407 361 596

Also Get our FREE Expert Guide – Self-Managed Super and You – it has all the info you need to know, with bonus TIPS and CHECKLISTS  to determine if SMSF is for you and what steps are needed to set up, as well as how to get your SMSF set up FREE. It also gives you ALL the Aust Tax Office publications about SMSF (NAT XXXX). Get your copy now – click “Download” top right hand side above. You’ll also get monthly SMSF news, investment teaching and upcoming seminar and workshop briefs! Download your FREE Guide now!

Advertisements

About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in Masterclass SMSF, Super Law & Compliance and tagged , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s