Purchasing property in a Self Managed Superannuation Fund
Notwithstanding lingering uncertainty about the future of limited recourse loan arrangements for self managed superannuation funds (SMSF), acquisition of real property remains a popular investment strategy for SMSF trustees. When considering purchasing real property, SMSF trustees need to be aware of the strict rules that apply, particularly when borrowing money or when purchasing property from entities related to the fund. Given the potentially catastrophic outcomes if a SMSF is declared non-complying, trustees should ensure they obtain proper legal and financial advice before committing to a purchase.
7 Common Estate Planning Failures (and a simple way you can avoid them)
Estate planning allows you put in place strategies to pass ownership of assets, control of entities and decision making powers in the event of your death or loss of capacity. At its most basic level, estate planning deals with wills and powers of attorney.
Limited Recourse Borrowing Arrangements
Earlier this year we outlined the recommendations made by the Financial System Inquiry (FSI) in relation to limited recourse borrowing arrangements, which were that such arrangements should be prohibited (albeit existing arrangements should be maintained).
Estate planning and superannuation
Superannuation is a critical pillar of Australia’s retirement income system. The Treasury Department considers that by 2018 it will be the most critical – estimating that age retirement benefits will exceed age pension outlays. Whether superannuation is held through a self managed fund, an industry fund or a retail fund, it is a critical part of a family’s wealth – monies invested in superannuation are today worth about $1.5 trillion, roughly the same as our GDP, with that number exponentially increasing.
Limited recourse borrowing arrangements
In December 2013 the Government announced the terms of reference for the Financial System Inquiry, to be chaired by David Murray AO. The Inquiry was charged with “examining how the financial system could be positioned to best meet Australia’s evolving needs and support Australia’s economic growth”.
It is time to review your estate plan
Plan for this world as if you expect to live forever; but plan for the hereafter as if you expect to die tomorrow. – Solomon Ibn Gabriol
Estate planning is critical for anyone who has a family and anyone who has assets. The estate planning process ensures that in the event of death or incapacity, decisions are made by the people that you have chosen, and assets are dealt with in the manner you decide.
