Who is your backup for your Self Managed Superannuation Fund (SMSF)?
Have you given some thought to what would happen if you were to go overseas or become unable to fulfil your duties as trustee of your SMSF? This is something that is often overlooked when people start their own SMSF. A trustee of a SMSF should complete an Enduring Power of Attorney (EPOA) to ensure that if they were ever out of action, someone else could step in on their behalf.
An EPOA is an instrument which allows you to appoint another person and delegate to them the ability to deal with your finances. This instrument remains effective even if you lose capacity. This is a great option if you do not wish to wind up the SMSF or roll the money into another complying fund.
As the person will be required to deal with your SMSF, it is important that the appointed person has financial experience and really understands what the role entails. You should also ensure that the person is trustworthy as they will be dealing with a very important aspect of your life.
The appointed person should be aware of the way in which you would like your SMSF to run. But this is only possible by you providing them with clear instructions and keeping them updated. The attorney’s power can be limited through the EPOA, however this should not be necessary if you have sufficient trust to appoint them.
If you require further information or require assistance in appointing an attorney under an EPOA, please contact our team of lawyers at The Quinn Group on (02) 9223 9166 or submit an online enquiry form today.