If a trustee of a self-managed superannuation fund (SMSF) becomes unable to perform their duties, there are steps that need to be taken to ensure the smooth running of the SMSF.
Here are some of the key steps that need to be taken:
- Determine the reason for the trustee’s inability to perform their duties: It’s important to identify the reason for the trustee’s inability to perform their duties. For example, if the trustee has passed away, the process will be different than if the trustee has become mentally incapacitated.
- Appoint a replacement trustee: If the trustee is no longer able to perform their duties, a replacement trustee will need to be appointed. This can be done in accordance with the SMSF’s trust deed or the superannuation laws.
- Notify the ATO: The Australian Taxation Office (ATO) must be notified of any changes to the SMSF’s trustees. This includes the appointment of a replacement trustee.
- Update the SMSF’s records: The SMSF’s records must be updated to reflect the appointment of the replacement trustee. This includes updating the fund’s trust deed, investment strategy, and any other relevant documents.
- Transfer any assets: If the SMSF holds any assets in the name of the former trustee, these assets will need to be transferred to the new trustee. This can be done by updating the ownership details of the assets.
- Consider seeking professional advice: It may be a good idea to seek professional advice from an accountant or financial advisor to ensure that all the necessary steps are taken and that the SMSF remains compliant with the superannuation laws.
By following these steps, the smooth running of the SMSF can be ensured even if a trustee becomes unable to perform their duties.
