6-member SMSFs proving popular for older trustees

The uptake of six-member SMSFs is primarily being driven by trustees over the age of 80 who want their adult children to take over the management of the fund.

Speaking to SMSF Adviser, SMSF Association deputy chief executive Peter Burgess said while there has not been significant uptake of six-member SMSFs since the legislation allowing this was passed, the ATO statistics indicate around 90 or so funds now have six members. 

Mr Burgess said there had been renewed interest around adding additional members to funds, and many of the conversations around this involve trustees who are getting to an age where managing and administering their funds is getting too difficult for them.

“What they’re doing is inviting their adult children not only to join the fund but to take over the management of the fund,” said Mr Burgess.

“That opens up a whole load of questions and issues around decision making and who’s making decisions and how decisions are going to be made.”

Mr Burgess said this could see a new type of SMSF come into play where there are adult children in the fund, and they’re becoming the decision-makers.

“When you consider that the ageing population of SMSF trustees and the proportion of SMSF members who are 80 years and over is growing every year. We might start to see some renewed interest as a result of this legislation to add additional members to funds,” he said.

“There are issues to consider, and this is where an SMSF specialist comes into play in being able to point out the risk with adding additional members to their fund and how to deal with decision making and things like that in the future.”

 

 

Miranda Brownlee

05 January 2022

smsfadviser.com

 

Any advice contained in this website is of a general nature only and does not take into account your circumstances or needs. You must decide if this information is suitable to your personal situation or seek advice.

Rolanda has been my financial adviser for 20 years. I have always found her to be highly intelligent, knowledgeable and professional in her career. Rolanda is accessible at all times and patiently explains terms that I do not fully understand. I can highly recommend Rolanda and it is a pleasure to do so. I do this with the utmost confidence. Marcia Montgomery (Retiree – home duties and ex-clerk with Water Board)
I retired Oct 2012, and seeking Financial Advice for my retirement funds, I decided to have Rolanda look after my financial affairs, and so happy I did. Since my retirement I am extremely comfortable with Rolanda’s advice, experience and strategies and the returns on my investments. Rolanda is my "Breath of Fresh Air" at this stage of my life and she makes herself available 24/7 should you need to talk with her. Steve Hoad (Ground Engineer, Qantas)
In 1997 I left Energy Australia and decided to join Rolanda Adams Financial Services for the financial support and advice that I would need into the future. That decision has proved a very good one and I am still with Rolanda who has given me advice and friendship over those many years. The advice given has ensured that my investments have been protected and the major losses, of some, during the GFC was not felt by me unduly. Rolanda and her team are very easy to contact at any time and one is always received in a most professional manner. I would be most happy to recommend Rolanda Adams Financial Services to all who need financial services. Graham Fleeton (Manager, Property Insurance Group Energy Australia (Ausgrid))
Rolanda has been my Adviser for the past 18 years. Through her wide industry experience and professional expertise she has ensured the sound development and ongoing management of my investments. Her advice has invariably been sound, timely and entirely tuned to meet my personal needs in retirement. She has a friendly, engaging manner and is always readily available to address any of my concerns. I have no hesitation in recommending her. Neil O'Keeffe (Chief Inspector (retired), Australian Customs Service)

© 2022 Rolanda Adams Financial Services Pty Ltd. All rights reserved. Site by PlannerWeb.