Too many self-managed superannuation funds (SMSFs) have been set up in circumstances where only one member truly understands the fund and makes all the decisions, according to Partners Superannuation Services director Martin Murden.
Murden has warned that, in such circumstances, there is a danger that SMSFs will be left rudderless and without direction in the event that a SMSF trustee becomes physically incapacitated or dies prematurely.
He said trustees needed to ensure they did not leave their ageing spouse or partner in charge of a fund they had little understanding of, and that they did not leave their children unnecessarily exposed to tax problems in the event that both parents died suddenly.
Murden said SMSF trustees needed to understand the options open to them to avoid such problems, including rolling over into a public offer or industry fund, appointing professional corporate trustees, appointing a power of attorney and including children in the fund.
