The Government has announced a proposal to increase the maximum number of members that a self managed superannuation fund (SMSF) can have from 4 to 6.
Trustees, members and their advisors will no doubt welcome a Government/Opposition announcement that is not an attack on the superannuation/SMSF sector.
This measure, if enacted, will assist family groups, larger than 4, who want to invest together in an SMSF. For example, parents with 3 or 4 children. Whether children should be members of their parents’ SMSF is something that must be carefully considered by parents and children alike. This includes from the perspective of investment strategies, control over the SMSF and succession of benefits (for parents in particular).
The measure will no doubt increase the interest of non-related persons “co-investing” in an SMSF. Such arrangements can have additional complexities; for example in relation to an exit strategy if there is a falling out between members.
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