When you are the trustee or a member of an SMSF, there are undoubtedly issues that will come up from time to time. Here are the top 3 issues that you may face and how to deal with them:
1. You are Personally Liable
This is simply a matter of how much you are willing to research and be aware of legally. When you agree to enter into a Self-Managed Super Fund, you are also agreeing to be personally liable for anything that goes wrong or that ends up being out of line with regulations. You can, of course, hire a financial expert to help you keep things in line, but if anything goes wrong you cannot pass on the blame to them as you are legally held responsible. This is a huge undertaking and you should definitely read up on and do proper research before taking on this legal responsibility.
2. Inability to access the Superannuation Complaints Tribunal
As a trustee or member of a SMSF, it is vital that you understand how to deal with complaints through the proper channels. As it stands currently, if you were to suffer losses due to fraud, you would not have access to the Superannuation Complaints Tribunal. This goes back to our first point, where you are legally held responsible. Because of this, you are again personally liable and therefore any issues with this cannot be handled legally by the Tribunal.
3. SMSF Scams
There are many times when one may face as a scam as a trustee or member of a Self-Managed Superannuation Fund. The most popular type of scam is when someone offers to help you get your funds early. This can result in a lot of problems. You need to protect yourself by knowing what is and isn’t legal. For example, if someone offers to get your funds out early for you, you need to be aware that unless you are age 55 or older that you cannot legally access these funds except under extremely limited circumstances.learn more helpful information at http://www.theaustralian.com.au/business/wealth/solution-to-atos-online-application-hurdle-for-new-diy-funds/story-e6frgac6-1227265196581
The other aspect of the scam is that they offer to handle your fund for you by paying off creditors or doing things with the money that are also deemed illegal. If you do end up agreeing to make the transfer to them, they will most likely end up taking a large portion as a ‘commission’ or end up stealing the entire amount from you. As a last resort, they may even ask you to sign false documents which can then lead to you facing large fines for illegal actions. It is definitely safer to do your research and to immediately flag any such behavior as unsafe.
In conclusion, when you are a trustee or a member of an SMSF it is a great opportunity to save money for your long term benefit. However, when faced with legal issues or scammers, it is vital that you know the ins and outs and that you get the help you need so that you won’t face major hurdles on your way to financial success.