Self Managed Superannuation Fund - Parent and Children Members

Family Members in Superfund

The investment risk profile for parents is not the same as that of their children.

Accordingly, the potential for problems when including your children in your Self Managed Superannuation Fund is significant and could be an unwanted trigger to unrest amongst the family.

Possible problems include:

  • Trustee decisions have to be unanimous and therefore parents have to seek approval from the children members with regard to the investment strategy and distribution of their retirement savings.
  • Children members may feel disadvantaged from a conservative investment strategy preferred by their parent members.
  • Possible complications from divorce are more likely with both parent and children members and their respective spouses having a claim on the investments of the SMSF.

The different risk and investment strategies, the lack of investment and life experience and the influence by outside parties, suggest that parents should maintain conrol of their retirement savings away from the influence and involvement of their children.

Children may also have the inherent motivation to keep the parents retirement savings in the fund for as long as possible to maximise their own inheritance.

Contact A Grade Tax Accountants Penrith on (02) 4731-1405 for tax accounting, bookkeeping, superannuation, tax returns, tax planning and advice for Personal and Business clients.

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