4:25PMWednesday Apr 16th, 2014

Get SMSF Documentation Right, Warns Topdoc

Money240There is a strong need for financial advisors to be more clued up on the documentation that is required of income streams, believes self managed super fund (SMSF) documentation provider Topdocs.

The company’s national manager Michael Harkin issued a warning to financial advisers that recommending the wrong documents could severely impact a new income stream recipient.

He explained that clients could be denied payments and have their taxable income affected.

Harkin noted that there is a definite need for more training on SMSFs to ensure that trustees are following superannuation regulations.

He also drew attention to the need for fund members to formally ask trustees to pay an income stream from the SMSF, and that every decision needs to be recorded sufficiently in the minutes of the fund.

A formal agreement detailing the full terms of the resolution would then need to be developed too, Harkin said.

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