Our Services  > Self Managed Super Fund Services  >   Working With Trustees

Working With Trustees

Cornerstone works directly with Trustees of SMSF's for a number of reasons:

• Working out whether a SMSF is right for you
• Tailor and optimise strategies that are available within SMSF's
• To work through one off issues that arise during the course of a SMSF
• To make having a SMSF as simple as possible.

Is an SMSF right for you?

There are many different types of super funds available. From industry funds, retail funds, corporate funds and SMSFs. Knowing which one is right for you is dependant on a number of factors.

There are clearly many benefits to having a SMSF the most obvious being flexibility. With flexibility however comes responsibility. Whilst the Trustee will always be ultimately responsible for the Fund, there are many functions that can be outsourced, making having a Fund much easier to manage.

Tailored strategies

Having a SMSF and knowing what to do with it are two very different things. There are many strategies that can be employed within a SMSF. Knowing what options are available and what is appropriate for you is the key to getting maximum benefit from your SMSF.

Some of the key strategies that are currently being used include:

Borrowing to invest

SMSF's can now borrow inside their funds to purchase an asset. There are set rules that need to be closely followed however by engaging with a team of professionals this can be completed fairly easily.

Savvy small business owners are using their super monies to purchase the premises their business operates from, then leasing the property back to their company. Many Australians who have a love affair with property are further building their property portfolios, but this time using their super funds.

For people with substantial assets outside of super, who are starting to think about their retirement, (and the most tax effective way to fund it), self financing arrangements, (whereby they lend money to the super fund), is also a strategy that is gaining momentum.

Estate Planning certainty

With many blended families in Australia, our clients are commonly concerned over what will happen after they have passed on. Whilst it is impossible to rule from the grave, there are rules that can be adopted within a SMSF to ensure that super monies bypass your estate, thereby lessening the amount that can be challenged.

For those who feel a beneficiary should not receive a lump sum as an inheritance due to their age, disability or other reasons, (addiction, bankruptcy etc), there are methods that can be employed once again to provide the member with certainty about what will happen upon their death.

As to whether these, or other strategies are right for you, of course depends on your individual financial planning needs. In addition, not all Trust Deeds are created equal, so learning whether your Fund can undertake such a strategy is of course the very first step.

One off issues

Many SMSF trustees take the "Self Managed or DIY definition" literally, choosing to manage the fund themselves without expert assistance. There are times however, when even a true DIY'er will require specialist assistance. Examples of such instances include starting a transition to retirement income stream, commencing a retirement pension, organising a SMSF Will or Life-will, or even gaining assistance with compliance and administration of your Fund.

The advisers at Cornerstone Financial Group are happy to assist existing Trustees with these issues as they arise. In the first instance we complete a compliance check over basic issues of the Fund. We then spend time understanding the Fund's Trust deed so that we can understand the opportunities and limitations for your Fund. We partner with the Trustee to work through the appropriate strategies and assist with all levels of implementation. Many Trustees that prefer this approach to our full service offering often utilise our services on an ongoing basis to "check in" and gain peace of mind knowing their Fund remains best structured to meet their needs.

Making SMSF easy

SMSF Trustees have the option of partnering with us on a full service package. This is where having a SMSF can be as easy as having a retail super fund. Whilst Cornerstone cannot take away the Trustee's responsibilities we can perform the day to day functions on your behalf.

We partner with trustees from day one making each step in the journey as simple as possible. Ongoing advice, education, service and administration assistance is provided and Cornerstone's "on call" service means your Adviser is easily accessible to guide you through every part of the process.

If you are a Trustee or considering becoming a Trustee, Cornerstone's Advisers located in Sydney and the Sunshine Coast are here to support you. Please contact us at any time to discuss your individual SMSF needs.