Some points to think about regarding updating SMSF deeds

Updating an Australian Self-Managed Super Fund (SMSF) deed is essential to ensure that it remains compliant with current legislation and continues to meet the changing needs of its members. Here are some key points to consider when updating an SMSF deed:

    1.    Legislative Changes: Regularly review the deed for compliance with the latest superannuation laws and ATO regulations.
    2.    Fund Objectives: Ensure the deed aligns with the current and future objectives of the fund’s members.
    3.    Addition/Removal of Members: Update the deed if there are changes to the fund’s membership.
    4.    Trustee Changes: Reflect any changes in the trustees, whether individual or corporate.
    5.    Pension Strategies: Ensure the deed allows for various pension strategies, especially if members are nearing or in retirement.
    6.    Binding Death Benefit Nominations: Update rules around death benefits, including reversionary pensions, to reflect member wishes. You will also wish to implement SMSF Wills.
    7.    Estate Planning: Align the deed with members’ broader estate planning strategies.
    8.    Investment Strategy: Confirm that the deed does not unnecessarily restrict the fund’s investment options and aligns with the fund’s investment strategy.
    9.    Borrowing Provisions: If the SMSF wishes to borrow (via Limited Recourse Borrowing Arrangements), the deed should expressly allow this.
    10.    Review Frequency: It’s generally recommended to review the deed at least every 3-5 years or when significant personal or legislative changes occur.