Big four firm urges SMSFs to update trust deeds
SMSF practitioners should update their client’s trust deed before 30 June to ensure it doesn’t restrict the client from implementing particular strategies under the new superannuation laws, according to one big four firm.
PwC director of private clients Liz Westover says updating the client’s trust deed will be vital for ensuring certain strategies can be implemented for the client and the fund can do what the new law contemplates.
“Some of the older deeds can be a bit restrictive and they may simply not contemplate these sorts of arrangements. They may have some old provisions that are at odds with the new law,” Ms Westover said.
While the law will always override the trust deed, Ms Westover said trust deeds can be more restrictive than the law and SMSF trustees will want to make sure that the trust deed allows them to do the things that they might want to do under the new provisions.
“We’ve just never had this notion of caps on non-concessional contributions by reference to account balances or the notion of reversionary income streams. You’d want to make sure that the trust deed contemplates the fact that money might have come out of super and it doesn’t just automatically get directed to one person,” she said.
“For a lot of people, this might actually be the trigger to say, ‘Well, look I haven’t updated my deed, maybe now is a good time to do it, particularly since we know that we have a lot more certainty’.”
Miranda Brownlee
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 also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
