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blog-checklist

As the end of the year is fast approaching, now is the time for Trustees to ensure their SMSF is in order.

There are a few critical areas  SMSF Trustees should look at and here is an end of financial year check list to help:

1. Investment Strategy: SMSF’s are required to have an investment strategy to reflect the purpose and intentions of the trustees.  This should be reviewed and updated on a regular basis.  This will ensure any changes in circumstances are taken into consideration when undertaking investment decisions.  It will also prompt trustees to consider the need for insurances within the fund.

2. Valuations: The financial statements of the SMSF must show assets at their market value at year end.  Where the investments are shares, term deposits, bank account etc, obtaining the market value at year end is a relatively straight forward process.  Where the investments are in property, however, the trustees may need to obtain a real estate valuation, look at similar sales in the area etc, in order to determine the market value of the SMSF property.  SMSF Trustees will require evidence to support the valuation.

3. Contributions: Members should determine their level of contributions for the year to date. Did the member want to increase salary sacrifice amounts to the maximum concessional contribution allowed? Did the member wish to make non-concessional contributions to take advantage of the government co-contribution? If the member is over 65 years of age, do they meet the work test to entitle them to make contributions? Do the members wish to make in-specie contributions of listed shares?

4. Pensions: Have the minimum pension payments been made this year?

5. Binding Death Benefit Nominations (BDBN): Do the members have valid BDBN’s? Have their circumstances changed?

If you are a SMSF Trustee or are thinking of setting up a SMSF contact us at Riverwood Group for assistance and advice.

 
 
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