Self-Managed Superannuation Funds

The Benefits of the Cleary Hoare Deed

Cleary Hoare’s Self-Managed Superannuation Fund Deed has been specifically formulated to meet a range of client needs. The benefits include taxation advantages, asset protection and most importantly, the flexibility to facilitate all available strategies to maximise the clients' superannuation investment.

BENEFITS

The special features of the Cleary Hoare Self-Managed Superannuation Fund Deed provide the following benefits:

• In specie non-cash contributions can be made.
• Spouse contributions can be made.
• Government Co-Contributions can be made
• Allows Child Contributions
• Member benefits can be rolled over in specie.
• Members can choose from a wide range of pensions including Market Linked Pensions (or Term Allocated Pensions)
• Sub-funds to take full advantage of pension exemptions.
• Investments can be allocated to particular members.
• Payment splits under family law settlements.
• Asset protection can be provided for the amounts in excess of the pension RBL.
• Binding death benefit nominations are provided.
• Excess insurance proceeds can be paid to the reserve account to benefit other members.
• Benefits from the reserve account can flow to members’ accounts without activating a surcharge.
• The Deed will be automatically updated with changes in the law, provided the fund is complying.

What to create a SMSF Deed, click HERE for the client information sheet.

DEED CHARACTERISTICS

Contributions:

Contributions can be in non-cash form (e.g. assets such as listed securities and business real property acquired at market value) as well as cash contributions.

Contributions can be made by a member on behalf of their spouse to take advantage of the tax rebate available.

Member Benefits:

The Cleary Hoare Deed allows for the transfer, receipt and payout of members benefits in specie. This means that assets can be transferred between funds.

Different Member Requirements/Preferences:

Pensions: Unlike many other superannuation fund deeds the Cleary Hoare Deed allows for a wide range of pensions to accommodate clients’ personal needs and preferences. These include payment of an allocated, or market linked pension.  In addition, a reversionary pension can be made for dependents of a member. The Deed provides pensions which comply with both the SIS Act and the Social Security Act.

Sub-funds: The trustee of the fund is able to segregate parts of the fund to create sub-funds. This is useful to access the income tax exemptions for pensions where one member is in pension phase (i.e. is in receipt of a pension from a fund) and the other member is in accumulation phase, for example.

Investments: The Cleary Hoare Deed is structured in such a way to allow the trustee to make investments specifically for a particular member, to suit the investment strategy of that member. This is useful where one member is risk adverse and the other member is a risk taker. All gains and losses generated by a specific investment are allocated to the particular member.

Asset Protection: Section 116 of the Bankruptcy Act protects the member’s account, up to the member’s pension RBL.

The Cleary Hoare Deed safeguards the balance in excess of the pension RBL from the trustee in bankruptcy.

Binding Death Benefit Nominations:

The Cleary Hoare Deed allows a member to make a binding death benefit nomination to direct the payment by the trustee of the member’s benefit upon death.

Reserve Account:

The Deed provides that the trustee may receive certain payments to the reserve account. These include discretionary distributions, amounts from life insurance policies where the member’s RUBLE has been exceeded and other non-contribution payments.

The reserve account can also benefit members in respect of their estate planning needs.

Changes in Law:

When there are changes in law, the Deed provides for automatic amendments to the extent that the fund is a complying fund.

USING THE CLEARY HOARE DEED

The Cleary Hoare Self-Managed Superannuation Fund Deed can provide your clients with asset protection, taxation advantages and flexibility.