SMSF documentation provider Topdocs has partnered with Class Super and BGL to improve process efficiency for advisers when updating client SMSF deeds.
Ensuring SMSF deeds were up to date was critical as old deeds could put clients at risk of administrative penalties or place their SMSF death benefits in jeopardy, Topdocs director Michael Spakman said.
However, current processes for updating deeds en masse can be extremely time consuming and cause many advisers to choose to delay the transition process.
In partnership with Class Super and BGL, Topdocs has developed unique integrations to streamline processes for updating clients’ deeds, making the process quick and easy.
“These integrations enable advisers to update their clients’ SMSF deeds using the data already stored in their accounting system, meaning they don’t have to complete order forms, substantially reducing the time involved,” Spakman said.
“Breaking down the ‘time burden’ of the deed update process via these integrations has seen a substantial increase in adviser willingness to update their clients’ trust deeds.”
The introduction of the Simpler Super legislation in 2007 led to many advisers updating SMSF deeds, but a significant number of deeds had not been updated since, he said.
“While there hasn’t been a single piece of legislative change to equal the 2007 legislation, a raft of important legislative and regulator changes have occurred during this period which have now culminated in the need to update.”
Those changes include amendments to the limited recourse borrowing arrangement legislation, new limitations on the types of insurance cover available to members, the ability to refund excess contributions and changes to concessional and non-concessional contribution caps, he said.
“Out-of-date provisions guiding the actions of trustees on any of these matters could result in significantly adverse effects on members’ benefits and with the recent introduction of administrative fines for SMSF trustees, potential monetary penalties.”
Evolving SMSF estate planning strategies had also increased the risk of members with older deeds not having their death benefits paid as they intended, he said.
“One of the major provisions not covered in older trust deeds are non-lapsing binding death benefit nominations, meaning that many SMSF members will have inadvertently created a three-year lapsing nomination,” he said.
“The implication of this is that many SMSF members may already have an invalid nomination or may die without a valid nomination if three years have passed since it was last updated.”
