Press Release - Important SMSF Christmas Strategies

Press Release

IMPORTANT SMSF CHRISTMAS STRATEGIES

Southport Qld, 12 DECEMBER 2007:  The Christmas holiday season is upon us and like all Christmases, it is a time for family and giving.  According to leading self managed superannuation Firm Spectrum Accountants, "A SMSF captures the lifetime spirit of Christmas.  It is a vehicle that allows all members of the family to contribute, invest together, look after themselves and others in retirement or incapacity and then on death, provide financial gifts to members of their family.?

?For those people with a SMSF there are two important strategies to consider this Christmas.? 

1.  Does each member of the fund have a SMSF Will in place:  If something happens to the member over the holiday season, have they considered what to do with their superannuation benefits in their SMSF?  People spend a great deal of time planning for Christmas and their holidays but precious few moments are given to what could happen to them and their family financially in the event of a tragedy.  Even if a member of a SMSF has a legal Will it is ineffective in dealing with a deceased member's superannuation benefits.  A SMSF Will is a must for ALL members of a SMSF and provides both the Trustee and members with security in distributing superannuation benefits on death in the manner that they want.

2.  Is there enough insurance for ALL members:  Even though some of the older members of a Fund are no longer insured, preferring to live on their existing superannuation benefits, consideration should be given to what happens in the event that younger members of the Fund - including children, both dependant and non-dependant pass away or become incapacitated.  Is there enough family wealth in the Fund to look after the family where there is a loss or incapacity of a family member?  If not, the Trustee should look at funding higher tax deductible insurance cover for younger members using the investment earnings of the Fund.  It is tax effective for the SMSF and for the family in the event of a claim.

 According to Spectrum Accountants ?Although Christmas is a time for joy, family and good cheer; it is also a time for reflection.  Where better to start than with a family superannuation fund ? a SMSF??

Please contact the team at Spectrum Accountants today to discuss this Press Release.