Chris Hogan & Co. logo

SMSF Trust Deed Update Service

We established our SMSF trust deed update service in 2002 and now provide the service to thousands of funds throughout Australia.

The service ensures that our client's SMSF trust deeds are accurate and more importantly up-to-date.

The problem - Constant legislative change!

Chris Hogan has practiced in the superannuation area for the past 25 years. In each of those years there have been changes to the legislation relating to SMSFs. Many of these changes impose new requirements or restrictions for funds. Many others provide new and valuable opportunities re benefits, contributions and investments. Click here for a sample of legislative changes in the past 10 years that affect SMSFs.

The dangers for Funds

In most cases, if a change is not reflected in the fund's trust deed the fund cannot use the new opportunity to optimise wealth creation, retirement benefits and succession planning.

For example, binding death benefit directions are a fairly recent development. In a number of recent cases, directions have been deemed contrary to the trust deed and therefore invalid. So the deceased member's wishes re their death benefits have been frustrated because the deed was not updated to provide for these directions.

Also a restrictive change may render illegal an action which would nevertheless be consistent with the deed. An example of this relates to the limited recourse borrowing restrictions imposed in 2011. Failure to amend the deed may lead to an arrangement that breaches the new restrictions.

So for greatest flexibility and safety, trustees should ensure that the deed is regularly reviewed to ensure that it is consistent with the law. This is what our update service seeks to ensure.

ADVISERS BEWARE!

SMSF Trustees can take action against a professional for inappropriate advice that results in a loss to their superannuation Fund.

Trustees can recover this loss through special provisions in the Superannuation Industry (SIS) Act.

OUR STRONG RECOMMENDATION - If a trust deed is not up to date - do NOT provide professional advice.