5 Simple Steps to Setup a Self Managed Super Fund Account

1. 5 Simple Steps to Setup a Self Managed Super Fund Account After deciding that a self Managed Super Fund is right for you, it becomes vital for you to comprehend the steps entailed in its setting. Here are those steps that you have to take: 1. Setup a trust The first step that you have to take in having an SMSF is to establish a trust and register it with the Australia Taxation Office. A trust has: •Assets •Individual beneficiaries •Intent to set a trust

2. •Trustees 2. Attain the trust deed The trust deed establishes rules & regulations for the operation of a Self Managed Super Fund. Therefore, it is critical to begin with a well-created trust deed. A competent person should create the draft of the trust deed. This person can be a recognised deed provider, a legal practitioner, or an SMSF Accountant with a sound knowledge of superannuation law. After the completion of trust deed, the trustee should execute it as per the rules of the concerned state. The trust deed: •Specifies the rules & regulations that the trustees have to follow. However, there is no permission for the containment of clauses that would need the trustee(s) to violate the Superannuation Industry (Supervision) Act 1993 •Should be created to allow the Self Managed Super Fund to target its aims •Can be improved as per the set rules of the original trust deed •Determines the calculation of member accounts. In the accumulation stage, the trust deed will highlight the way for the credit of earnings to every member’s account •Clarifies whether the Self Managed Super Fund can pay pensions, or not. If yes, the trust deed will mention the process. 3. Sign a declaration As a trustee or director of a Self Managed Super Fund, you have to sign a declaration to state that you have a sound idea of a trustee’s duties, obligations, and responsibilities. Get the approval for this declaration by filling and submitting a respective form at the ATO. You have to obtain the approval within 21 days of becoming a director/trustee. The responsibilities and obligations you have to carry out as a trustee:

3. •Act honestly in all matters of Self Managed Super Fund •Exercise the degree of skill, care, and conscientiousness of an ordinary person •Act for the betterment of the members •Value the separation of Self Managed Super Fund assets from your personal and business assets •Avoid doing the work that would obstruct trustees to perform their functions •Formulate and implement a strategy for better investment •Manage reserves responsibly •Allow the members access to particular information as per their wish 4. Lodge an election with the regulator You have to lodge an election within 2 months of the setting up of a Self Managed Super Fund as per the regulations of the ATO. Being irreversible in nature, this election makes it clear to the ATO that the Self Managed Super Fund is a matter of the respective superannuation legislation’s needs and will have a reduced taxation treatment with a rate of 15%. 5. Open an account As a trustee, you have to open an account for your Self Managed Super Fund. With such an account, you can easily accept earnings from investments, contributions, and rollovers. You can use this account to pay expenses, like accounting fees, supervisory levy, member benefits, and taxation liabilities. Conclusion A Self Managed Super Fund is extremely useful fund for the future. To have this one, you have to follow the steps, like trust setting, trust deed drafting, declaration sign, an election lodging, and an account opening.