Managing a self-managed super fund (SMSF) comes with important responsibilities.
But what happens if illness or declining capacity means you can no longer manage your SMSF yourself?
It is an important question to consider before the situation arises, particularly when planning for the later stages of life.
Who will manage your SMSF?
One of the most important questions is also one of the easiest to put off.
If you can no longer perform your role as an SMSF trustee, someone may need to take over the legal responsibilities involved in managing the fund.
Having appropriate arrangements in place can help prepare for this possibility.
The role of an enduring power of attorney
An appropriate enduring power of attorney can play an important role if you can no longer manage your own financial affairs.
This may allow the person you appoint to take over the necessary legal responsibilities associated with your SMSF.
Planning ahead can help ensure these arrangements are in place before they are needed.
Choosing the right person matters
Think carefully about who you appoint.
Your SMSF may represent one of your largest financial assets. The person who eventually takes responsibility may therefore have considerable control over your financial affairs.
Choosing someone suitable for this responsibility is an important part of planning ahead.
Review your broader estate planning
A change in your circumstances can also be a useful time to review your broader financial and estate planning arrangements.
This may include reviewing your binding death benefit nominations and considering how your superannuation fits into your estate planning.
Planning ahead can help ensure your arrangements continue to reflect your circumstances and intentions.
Is your SMSF prepared for the future?
At Forman Financial Services, we can help you consider your SMSF as part of your broader financial and aged care planning strategy.
Contact us here to discuss your circumstances and financial planning needs.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions.
Superannuation and aged care rules can change regularly. Therefore, the information above may not reflect the current position.
We recommend seeking appropriate professional advice before making decisions about your individual circumstances. If you would like advice on this matter, please contact us.