A self managed super fund can often seem like something that would be too hard for the average layperson to do, when in fact it is not as difficult as it seems. There are also many benefits to doing so. A self managed super fund is a type of trust which is maintained for the singular purpose of the provision of retirement funds and benefits for when somebody retires. Having a self managed super fund is also very advantageous for people in certain careers such as a dentist, doctor, vet etc. This is because these careers will see the individuals being in one place for a long period of time. It would make sense that the rent being paid for the practice should be going into their self managed super fund rather than someone else’s. There are also different tax benefits that could be beneficial to practitioners.
Here are some tips for setting up your self managed super fund.
Get your team together
Professional advice is always preferable to have when setting up your own self managed super fund. You will need the help of professionals coming from different fields such as accountants, auditors and a lawyer. These are definitely essentials when it comes to this, and should be considered seriously. A team of professionals means you will get professional work, and this is something that is important in any type of similar situation.
Set up a trust and obtain a trust deed
You then need to set up a trust for your self managed super fund.
You must register a trust with the ATO, and you must ensure that your trust has trustees, assets, identifiable beneficiaries and intention to create a trust. After this, you must obtain a trust deed. A trust deed will set out the different rules and regulations under which it will operate. It is important to use your team of professionals to create a well-drafted trust deed to avoid issues in the future. A good trust deed will be designed to give the trustees the most control possible and the most flexibility possible. When the trust deed is finished and ready to go, it should be executed by the trustees. The trust deed should set out all the rules and regulations, and then apply and implement them into the life of the trustees.
Sign a declaration
Your self managed super fund will be almost ready to go.
The trustees must now sign a declaration to say that you understand your obligations of your self managed super fund, as well as the responsibilities that they have once they have signed it. The declaration must be signed and in the approved form within 21 days of you becoming a trustee.
Open a cash account
The trustees of a self managed super fund will need to open a cash account in order to receive contributions, earnings and rollovers from investments. This account will also need to pay certain expenses such as accounting fees, annual supervisory levy, taxation liabilities and member benefits. You must know all of these things so that you understand what you will have to pay upon signing a declaration and setting up your trust.
In summary, a self managed super fund has many steps into being set up, but once they are complete it will be well worth it. It is important to have a team of professionals to help you set it up, so that everything is correct and there will be no issues with it. This way it can be set up quickly and you can start operating as soon as possible.