5 Responsibilities of an SMSF Trustee
If you are a member of an SMSF, then you are also a trustee, and with that comes responsibility.
These numerous responsibilities can be fairly confusing so we thought we’d help by identifying five main responsibilities of an SMSF Trustee.
1. Act honestly
This may be obvious, but we feel it is still important to mention. Acting honestly in regards to all and any matters that affect the fund is extremely important. Every trustee must provide full disclosure regarding the status of the fund and how each members’ investments are going.
2. Investment objectives
It is required for a trustee to set an investment objective and strategy for the fund. The point of such a document is to ensure that all members of the fund are aware of the objectives and can assess if they are able to fulfil them. The document should be in writing and kept on file.
3. Work within the confines of preservation rules
For super funds, rules exist to ensure that they are built for the use of having money at retirement (and other permitted purposes). These preservation rules place limitations on when you can access your super fund. As a trustee of an SMSF, it is your responsibility to ensure that your super fund is working within these guidelines.
4. Investment restrictions
Although you are required to put together an investment strategy, superannuation rules do not explicitly express what your fund can invest in. However, restrictions do apply, so be sure that you educate yourself on what you can and cannot place investments in.
5. Administration
As a trustee of an SMSF, it is your responsibility to oversee the ongoing administration of your fund. So ensure contributions are being made and recorded, audits and tax returns are completed, etc. Covering all bases will mean you are less likely to get in strife.
If you would like to know more about your responsibilities, contact us or call us on (07) 3251 4444.
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