Recorded Webinar: Dealing With Chunky Assets in an SMSF

A number of years ago the ATO sent out letters to SMSF trustees warning of the diversification issues that can arise when an SMSF holds a large percentage of investments in one asset class or one asset. No doubt, funds that own properties that are intrinsically linked to the operations of a business conducted by a member or associated entity, were high on the list of scenarios the ATO had in mind. This session explores how those diversification issues can come to a head and provides estate planning strategies to navigate the waters, including:

• What issues can arise when a business is planned to pass to the next generation and the business premises are held in an SMSF?
• Strategies for balancing cash reserve requirements with a chunky asset investment, including:
  • the pros and cons of increasing SMSF
  • member numbers
• Issues and tips for when a member dies with an SMSF balance represented largely by a property used in an associated business, including:
  • when the death of a member is a sole surviving spouse with only adult children beneficiaries
• Are the ATO expectations that a property be sold in certain circumstances on the death of a member, including:
  • issues with the requirement for a maximum of two payments for a death benefit lump sum
• Does a lengthy lease assist or hinder the estate plan?
• How to satisfy a member’s wishes that a property in an SMSF go to a specific beneficiary, including:
  • what estate plan documentation would be required to satisfy those wishes?
  • covering off the tax and stamp duty issues
  • implementing a testamentary trust as an ownership structure for the property
• Should any manoeuvring required be attended to pre or post a member’s death?
• Case study