Plowman

Top
SMSF Trustees Must Consider Personal Insurance

SMSF Trustees Must Consider Personal Insurance

The government has now passed legislation that requires trustees of SMSF to consider whether insurance is required for the members of the fund as part of the investment strategy of the fund. The government’s explanatory statement says that this change “will ensure that members consider their personal circumstances in regards to their need for insurance cover such as life insurance”.

The Investment Strategy laws have also changed to specify that trustees must formulate and give effect to an Investment Strategy but also that they must regularly review the strategy.

The Trustees decision will need to be documented in either the fund’s Investment Strategy or a Trustee minute and will be reviewed at audit.

While some Trustees may review these requirements as unnecessary, the changes are part of the Governments stance on the importance of adequate personal risk cover and the recognition that the majority of Australian’s are under insured. We recommend that the insurance of the members be considered and documented during the regular investment review process to ensure these requirements have been met.

We greatly value our clients and are committed to honouring the trust they place in us by creating visible results for them. Get in touch to find out how we can help our clients maximise profits, minimise tax, and invest the balance for growth.

written by:

Thinking about becoming a client?

Book your free, no obligation consultation right now at either our Joondalup or Perth Office via our online booking system or get in touch to find out more.

Already a client and want to get in touch?

Send us an email via our enquiry form or give us a call today.