ClearLaw has recently covered some of the reasons why updates may be required to SMSF deeds. These reasons may still be relevant to SMSFs in 'pension phase'. Here's why.Paul Ellis
SMSF trustees still need to be conscious of changes to superannuation law and to the structure and circumstances of an SMSF even after a pension has been started. If necessary, the trustee should update the SMSF deed to ensure ongoing compliance. This is because:
In those circumstances, updating the SMSF's deed will not affect the pension being paid.
If the SMSF is paying an older form of pension, most particularly a defined benefit pension, then advice should be sought about whether the update will affect the existing pension.
Here are some examples why the trustee(s) of an SMSF with a member in pension phase may want to update the deed:
The deed may have been prepared before the changes to pension laws in 2007. If any member has benefits that are in an accumulation account, then those benefits will need to be cashed at some point. Generally, benefits are only paid out:
SMSFs that are paying defined benefit pensions should only be updated with extreme caution and only on the advice and with the assistance of a lawyer.
Likewise an SMSF trustee may not feel that an update is required:
For more information, contact Maddocks on (03) 9288 0555 and ask for a member of the Maddocks Superannuation Team.
Paul is a Senior Associate in the Maddocks Commercial team with particular expertise in commercial agreements for the supply of goods and/or services, the Personal Property Securities Act 2009, the National Consumer Credit Protection Act 2009 and the National Credit Code and the Australian Consumer Law.
Paul's key areas of practice include:
Before joining Maddocks, Paul was employed for 13 years with the Victorian Department of Justice, principally as a Deputy Registrar in the Victorian Magistrate's Court, but also as a legislation, policy and project officer for the Department.
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For more information, contact Maddocks on (03) 9258 3555 and ask to speak to a member of their team.