Mid-tier firm flags reoccurring issues with trustee incapacity
One mid-tier firm has reminded practitioners of the dangers of leaving client conversations about incapacity too late, with around a third of SMSF trustees now over 65.
Founder of Haynes Knight Greg Hayes says there are still not enough SMSF practitioners taking a proactive approach in preparing clients for the potential of cognitive decline in older age.
“If you look at the statistics in the SMSF space, 54 per cent are over the age of 55 and around 30 per cent are over the age of 65,” Mr Hayes told SMSF Adviser.
Whilst age isn’t the only determinant, as people become older health issues do become an issue.
“If clients and their practitioners haven’t thought about this [beforehand] then there is a danger ... it’s after the event that you’re trying to resolve the problem,” Mr Hayes said.
“It’s always easier to resolve the problem in advance rather than after the event, but we all tend to do it the reverse way around.”
Mr Hayes said the issue of incapacity should be at the forefront of SMSF practitioners’ minds in order to increase the number of conversations they have with clients about the matter.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.