in a webinar, “Become an SMSF Millionaire” we talked about the 3 key aspects of Incapacity planning.
If you do lose the capacity to make financial decisions for yourself, or another member of your SMSF is in that situation, always have an enduring power of attorney in place for every member of your SMSF.
The Super Fund requires all members to be Trustees or Directors. If you’re a member in a fund, you need to be a Trustee of the fund, and if it’s Individual Trustees, then we don’t recommend that anymore. If it’s a Company Trustee, you need to be a Director. But the Director or the Trustee can be the enduring power of attorney for the person who’s lost capacity, and it can’t just be a general power of attorney.
Also, you need to make sure the Trust Deed or the SMSF Deed and Constitution of the Trustee is set up to allow this in the event of incapacity. A lot of the good Deeds at the moment should be fine around this stuff but the bit that you need to make sure is everyone having an enduring power of attorney in place.
You won’t want to be in these situations, and you can’t access money, you can’t invest, you can’t sell an asset because you haven’t got some of this stuff sorted, and it creates a massive problem that you have to work through legally.
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