A self-managed super fund (SMSF) may have suited your financial goals and circumstances for many years.
However, your needs can change over time.
A move into residential aged care can be an opportunity to review your financial arrangements and consider whether your SMSF remains appropriate for the next stage of life.
Why review your SMSF?
People establish SMSFs for different reasons. The structure may provide benefits that have been important to you throughout retirement.
However, your health, capacity, living arrangements and financial priorities may change over time.
These changes can make it worthwhile reviewing the role your SMSF continues to play in your overall financial strategy.
Consider why you established your SMSF
Reviewing your SMSF does not necessarily mean you need to change it.
Instead, consider why you originally established the fund and the benefits it continues to provide.
Whether an SMSF remains appropriate will depend on your individual circumstances and the reasons you have for maintaining the structure.
Who will manage your SMSF if you can’t?
Another important consideration is what happens if you can no longer perform your role as SMSF trustee.
Illness or declining capacity may affect your ability to manage your own financial affairs.
Having appropriate arrangements in place, including an enduring power of attorney where suitable, can form an important part of planning ahead.
You should also think carefully about who you appoint. That person may eventually have significant responsibility for managing one of your largest assets.
Consider your broader financial arrangements
A review of your SMSF may also form part of a wider review of your finances.
For example, moving into aged care may require decisions about how to pay for accommodation and whether to access money held in super.
It can also be an opportunity to review your binding death benefit nominations and broader estate planning arrangements.
The aim is to consider whether your financial structures continue to suit your circumstances as your needs change.
Thinking about the next stage?
At Forman Financial Services, we can help you review your financial arrangements and consider how your SMSF fits into your broader 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.