Reviewing the express powers of the trust deed is critical for ensuring the efficient management of the transfer balance cap and implementing particular strategies, according to an SMSF document provider.
NowInfinity SMSF technical services director Julie Dolan says it is important that the express powers of the trust deed allow for the efficient management and maintenance of the transfer balance cap in relation to the credits and debits.
It may also impact the ability to transfer a balance cap excess and for it to be paid out to the member or rolled back into accumulation, Ms Dolan said.
“That requires express powers in the trust deed,” she explained.
“Express powers around the segregation of assets and things like that [also] needs to be in there.”
The express powers in the trust deed she said may also need to be updated in relation to the treatment of TRIS, the administration of the concessional caps, and making sure the segregation doesn’t knock out members’ investment choice in terms of each member still being able to formulate their own investment portfolio.
“So just making sure your trust deed is not too prescriptive, that it drills down into very fine detail of the legislation but it’s prescriptive enough to allow the trustee deed to benefit from all of the changes and administer the fund accordingly and to maximise the strategic opportunities in the fund,” Ms Dolan said.
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