SMSF Wind Up
SMSFs are usually set up because they meet the needs of the members at that time. But sometimes, things change making the SMSF not always right for you anymore. Because of this, you should regularly review your circumstances and decide whether to continue the fund or if you should wind it up.
If you are thinking of continuing or winding up an SMSF, you should consider the following:
- Do you have a good knowledge of trustee responsibilities and obligations?
- Do you have the time to run the SMF?
- Are the running costs of the SMSF more than what you want to pay?
- Or would another super fund cost less?
- Are you able to manage the fund’s investments effectively?
- Would you get higher returns if the super fund is managed in another type of fund?
- Do you still want the responsibility of running the fund? Including paying fines if there are things that go wrong.
- Do all trustees still agree on how to manage the fund?
- Is there a relationship breakdown?
If you think that an SMSF is no longer good for you, better wind it up.
What are the keys steps involved in winding up an SMSF?
- Check the trust deed for winding up instructions.
- All trustees and directors should agree about the windup and the decision must be documented.
- There is a need to pay and/or roll over the balance of members’ super to another fund. This may involve selling assets.
- A closing audit must be completed before lodging the SMSF annual return. Indicate here that the fund is being wound up.
- You need to pay any outstanding tax, and any debt before closing the fund’s bank account.
- If you need more help in winding up an SMSF you can always contact ATO.
How to continue with an SMSF?
- If you want to keep going with an SMSF but cannot manage the duties and the responsibilities, you could change to a different type of fund where a licensed trustee takes over the obligations.
- Speak to an SMSF professional about other types of super funds. They can help you decide if an SMSF is still right for you.
- Talk to an approved SMSF auditor and find out more about SMSF.
Kingston Knight Audit are the Auditor Melbourne experts to contact when dealing with your trust account audit, SMSF Audit, financial statement audit, and internal audit requirements. Contact us today, Kingston & Knight Audit offers a free telephone consultation to establish how we can best help you achieve the assurance and compliance you require.