Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Practitioners told to review SMSF client insurance

Practitioners told to review SMSF client insurance

magnify
Miranda Brownlee
06 February 2017 — 1 minute read

In light of the revised transfer balance cap and changes to contribution caps, SMSF practitioners will need to reassess whether their clients’ insurance remain appropriate.

Australian Executor Trustees senior technical manager Julie Steed says following the changes to super, SMSFs with larger balances may want to reduce the amount of insurance they hold in their fund.

“No one will want $1 million worth of insurance in super if they’ve got larger account balances,” she said.

Advertisement
Advertisement

Ms Steed said SMSF practitioners will need to look for “simple opportunities” like investment bonds outside of super instead.

“[Assets like this] will pass through very quickly and easily through to beneficiaries or legal representatives who distribute benefits through the trust estate and that will be very important for people.” 

Practitioners told to review SMSF client insurance
magnify
smsfadviser logo
join the discussion

When do you plan to undertake the exam under the new adviser education standards?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.