Planning the exit from an SMSF

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The first part to this paper examines key considerations that arise for SMSF members seeking to formulate a robust succession plan in relation to their SMSF benefits. There is also a focus on planning for control of a fund in different circumstances, and in particular:
  • the important role of enduring powers of attorney in addressing superannuation law compliance requirements and other risks associated with a fund member losing legal capacity
  • how the death of a fund member impacts control of an SMSF
  • when a corporate trustee is in place, how succession to the control of the company's directorship is a critical issue that should be carefully considered.
The second part to the paper explores the tax considerations that arise in relation to paying superannuation death benefits comprising a taxable component. At the same time, options and pitfalls associated with planning to make a timely payment of benefits to a member who may not have long to live, are reviewed.