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Re: winding up of a SMSF upon death of a trustee

Newbie

Views 145

Replies 3

Hi All,

 

just need help on an enquiry relating to a winding up of a SMSF when one of the TWO individual trustees has passed away.

 

I understand there is a 6 months grace period from when a trustee has passed away where the surviving trustee can operate the SMSF in a sole trustee capacity, however I cannot locate any information about what happens when the surviving trustee does not do anything in that 6 months? i.e. no appointment of new trustee or winding up of the super fund.

 

After the 6 months grace period is over, if no trustee is appointed, then is the SMSF considered non-compliant? if this is the case, then can the surviving trustee opt to wind up the super fund at any time without appointing a new trustee? or will they need to appoint a new trustee to make the super fund compliant and then wind up th super fund when the super fund has two individual trustees again?

 

Any help will be appreciated as I cannot locate any information relating to this anywhere?? thank you in advance for any help!

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 2

 

just need help on an enquiry relating to a winding up of a SMSF when one of the TWO individual trustees has passed away.

 

I understand there is a 6 months grace period from when a trustee has passed away where the surviving trustee can operate the SMSF in a sole trustee capacity, however I cannot locate any information about what happens when the surviving trustee does not do anything in that 6 months? i.e. no appointment of new trustee or winding up of the super fund.

 

It is all explained here.

https://www.heffron.com.au/news/death-in-an-smsf-practical-issues-with-individual-trustees

 

After the 6 months grace period is over, if no trustee is appointed, then is the SMSF considered non-compliant? if this is the case, then can the surviving trustee opt to wind up the super fund at any time without appointing a new trustee? or will they need to appoint a new trustee to make the super fund compliant and then wind up th super fund when the super fund has two individual trustees again?

 

If you do not appoint another trustee after 6 months, the fund could be made non-compliant  -  you cannot allow that to happen.

 

 

3 REPLIES 3

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 2

 

just need help on an enquiry relating to a winding up of a SMSF when one of the TWO individual trustees has passed away.

 

I understand there is a 6 months grace period from when a trustee has passed away where the surviving trustee can operate the SMSF in a sole trustee capacity, however I cannot locate any information about what happens when the surviving trustee does not do anything in that 6 months? i.e. no appointment of new trustee or winding up of the super fund.

 

It is all explained here.

https://www.heffron.com.au/news/death-in-an-smsf-practical-issues-with-individual-trustees

 

After the 6 months grace period is over, if no trustee is appointed, then is the SMSF considered non-compliant? if this is the case, then can the surviving trustee opt to wind up the super fund at any time without appointing a new trustee? or will they need to appoint a new trustee to make the super fund compliant and then wind up th super fund when the super fund has two individual trustees again?

 

If you do not appoint another trustee after 6 months, the fund could be made non-compliant  -  you cannot allow that to happen.

 

 

Newbie

Replies 1

Thank you very much for your response! Very helpful link.

 

Should the surviving trustee decide to wind up the super fund well in excess of the 6 months grace period, do you by any chance know the process of doing so? Thanks again for your time!

Taxicorn Registered Tax Practitioner

Replies 0

Thank you very much for your response! Very helpful link.

 

Should the surviving trustee decide to wind up the super fund well in excess of the 6 months grace period, do you by any chance know the process of doing so? Thanks again for your time!

 

We wound up a few funds this year  -  just follow the steps.

 

https://www.ato.gov.au/super/self-managed-super-funds/winding-up/