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Winding up an SMSF

Discussion in 'Superannuation, SMSF & Personal Insurance' started by davewa, 4th Jan, 2016.

  1. davewa

    davewa Active Member

    Joined:
    22nd May, 2011
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    Location:
    Sydney, NSW
    We are planning to wind-up our SMSF and withdraw all the funds from Super. The two members (ages 64 & 58) are permanently retired and both have only one pension account each.

    I have read "Winding up a Self-Managed Superannuation Fund" - ATO publication NAT 8107, but I suspect it is impossible to carry out their advised steps in the advised order.

    I found an article which explains this problem at
    Winding up an SMSF a case of getting steps in right order
    Scroll down to "Trustees should not follow the ATO's steps in the order given" and read the remaining half page of the article.

    Our fund should be quite simple because the funds have been 100% in term deposits and running accounts since commencing the SMSF.

    Can anyone please advise what really is the correct procedure.

    Thanks
    Dave
     
  2. Terryw

    Terryw Well-Known Member

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    You should seek legal advice on winding up a SMSF as well as financial and tax advice.

    The trustee basically has to first liquidate assets, arrange final tax returns and pay appropriate taxes, pay out member benefits, notify ATO and then wind up the trust, and then wind up the trustee.
     
  3. davewa

    davewa Active Member

    Joined:
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    Thanks Terryw,

    Financial and tax advice certainly makes sense. But you've got me worried with legal advice - I thought that the issue was that with both members retired and past preservation age then it was legal to leave the super system (after paying any tax). There must be something else that I haven't considered ?

    Regards,
    Dave
     
  4. Terryw

    Terryw Well-Known Member

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    A SMSF is a trust, so you have to consider the legal aspects. But could be pretty straight forward if you can understand the deed. Title needs to change hands to the new trustee - but just cash so easy.
     
  5. davewa

    davewa Active Member

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    Location:
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    Yes, I'm simply planning to close the SMSF and removing all the funds as cash. I'm still not clear why I need a lawyer's expertise.
     
  6. Terryw

    Terryw Well-Known Member

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    BEcause this is legal advice. Closing a company involves the Corporations Act and closing a trust is trust law. But it is like most things, if you have the knowledge and ability you could do it yourself.
     
  7. davewa

    davewa Active Member

    Joined:
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    Location:
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    Thanks Terryw.
    (Our SMSF has Individual Trustees)
     
  8. davewa

    davewa Active Member

    Joined:
    22nd May, 2011
    Posts:
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    Location:
    Sydney, NSW
    When paying out the remainder of the funds to (retired) members should this be paid out as a pension? The problem seems that once we've closed the SMSF we need to leave some money in the fund's working account to pay auditor fees, tax, etc - ie we are no longer an SMSF. Or do we simply go ahead and withdraw it.

    Thanks,
    Dave