SMSF strategy: Keeping it all in the family

Adding family members to your self-managed super fund (SMSF) can increase your fund’s buying power and provide more estate planning flexibility.

How this SMSF strategy works

You can have up to four members in an SMSF. By adding family members, such as adult children, you could increase the fund’s valance considerably. This could allow you to:

  • purchase assets you don’t have sufficient money to buy individually, such as residential or business property;
  • make some significant cost savings, as many of the costs involved when setting up and running an SMSF are a fixed amount (i.e. they don’t increase if the fund balance does).

Having one fund for the family can also:

  • give you more flexibility to decide which assets are sold to pay a death benefit if a fund member dies;
  • make it easier to transfer your wealth tax-effectively from one generation to the next.
How adding family members to your SMSF can work
How adding family members to your SMSF can work in your favour

SMSF strategy tips

Before setting up an SMSF with other family members, consider whether you would be happy to share fund decisions.

If your SMSF still doesn’t have enough money to acquire an asset after consolidating super balances, the fund may want to borrow money.

Adding fund members could also help them take advantage of any tax deduction claimed for benefits paid if another fund member dies or becomes disabled.

At Calibre Private Wealth Advisers we can help with SMSF establishment & advice, and can help you manage the complexities of setting up and administering your own fund.

With its built-in tax advantages, superannuation is a powerful vehicle for long-term wealth creation, despite growing regulatory complexity. We can help you make the most of the opportunities super has to offer, so you can enjoy the retirement lifestyle you’ve always looked forward to.

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax/or legal advice prior to acting on this information. Before acquiring a financial product a person should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product. The material contained in this document is based on information received in good faith from sources within the market, and on our understanding of legislation and Government press releases at the date of publication, which are believed to be reliable and accurate. Opinions constitute our judgment at the time of issue and are subject to change. Neither, the Licensee or any of the Oreana Group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Gordon Thoms and David Conte of Calibre Private Wealth Advisers are Authorised Representatives of Oreana Financial Services Limited ABN 91 607 515 122, an Australian Financial Services Licensee, Registered office at Level 7, 484 St Kilda Road, Melbourne, VIC 3004. This site is designed for Australian residents only. Nothing on this website is an offer or a solicitation of an offer to acquire any products or services, by any person or entity outside of Australia.

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