In accordance with superannuation law, all SMSF trustees are required to regularly review their fund investment strategy. This is fair enough. Of equal importance is a regular review of the trusteeship of a fund!
In light of many recent court cases, it’s crucial to recognise that the members won’t always be the trustee of the fund. This means their desired benefit outcomes may be at risk. After all, at the time decisions are being made, the member may indeed have passed away. Therefore, one of the most important issues that needs to be addressed, right from the moment a fund is established, is: what happens when a member dies or loses capacity?
These may not be questions that trustees want to address, particularly when establishing a fund, but ultimately one of the first questions asked should be “who’s going to look after your fund when you die?” This question becomes more relevant as each year passes.