When the trustee of an SMSF opens a bank account to conduct the financial transactions of the SMSF, who should be authorised to transact on the account?

A person’s will cannot generally direct the distribution of superannuation benefits. Their SMSF and their will can, however, work together to maximise benefits paid to the deceased person’s beneficiaries, says Michael Harkin.

Part 1 of this two-part article considered some reserves that may be used by trustees of SMSFs and some guidance on the use of reserves. Part 2 continues the consideration of the range of reserves and looks at rules regarding payment out of the reserves.

Following the major changes to superannuation legislation in 2007, the attraction of reserves in SMSFs diminished. Industry innovation and a response to further legislation and regulatory interpretation has, however, seen somewhat of a resurgence in the use of reserves in SMSFs.