An SMSF (Self-Managed Super Fund) can be established by almost anyone, with a maximum of six members. Typically, SMSFs are set up by individuals or couples, but other arrangements, such as involving family members or business partners, are also common.
Business partners are permitted to create an SMSF together, provided no member is employed by another unless they are related. For example, two directors of a company can establish a fund together, but if one individual is not a director, this is only allowed if they are family members.
Children of any age are eligible to join an SMSF. However, if they are under 18, they are not permitted to act as trustees, and the parent will need to assume the role on their behalf. Once they reach 18, they must take on trustee responsibilities unless they formally appoint someone through an enduring power of attorney.
SMSF members generally serve as trustees, meaning the responsibility for managing the fund and making decisions is shared. Most decisions will require consensus among all trustees, ensuring collaborative governance.
Should a member wish to leave the SMSF in the future, careful planning is required. Exiting the fund could involve the sale or transfer of assets, which may trigger capital gains tax or stamp duty. It is essential to have an exit strategy in place early on to avoid potential disputes or tax implications.
