A type of trust strategy based on superannuation aiming at providing financial benefit to the members or trustees on retirement is known as Self Managed Super Fund or SMSF. This is a special type of super fund that is exclusive in its own way because it comprises of members ranging within one to four and all are considered as trustees of the SMSF. In this trust structure, every member has equal importance and everybody is entitled to the benefits of the funds in times of need. There is a considerable amount of control present in this type of SMSF.
Features of SMSF
SMSF works with completely different set of rules and therefore, it has got a separate Tax File Number (TFN), Australian Business Number (ABN) and transactional bank account that are required to manage their funds after retirement. The various strategies that are utilized under SMSF are:
• Trust deed based SMSF.
• Establishment of corporate trustee.
• External experts ought to be employed.
• In specie contribution.
• Investment strategy based on superannuation structure, trustee responsibilities and limited recourse borrowing.
Broadly, there are individual trustee and corporate trustee under the SMSF investment strategy. Financial experts need to be consulted to get enlightened more about SMSF strategies during retirement.