The Benefits Of Adding Your Children To Your SMSF

Setting up an SMSF allows an investor to take control of their retirement savings and invest in assets that benefit their retirement goals, such as high-yield brand new house and land builds with Supavest. 

For SMSF members looking to add to their SMSF in regards to members, it must be understood that a total of six members can be a part of an SMSF. 

For SMSF investors looking to add members who aren't friends or coworkers, there is the option to add one's own children to the SMSF. 

The parameters of adding a child to an SMSF are quite simple, the children must be 18 years or older. 

However, if they are under 18 according to 17A(3)(c) of the Superannuation Industry (Supervision) Act, children under 18 can become SMSF members if the parent or guardian agrees to act as their representative trustee. 

So what exactly are the benefits of adding children to your SMSF? 

Sit back, relax as well divulge into the ins and outs if the benefits! 

Increased Purchasing Power

If children are added to an SMSF, this allows for the amount of funds that are to be invested to increase drastically, depending on the super balance of the children. 

In other words, the SMSF has increased purchasing power to move forward on investments such as residential property.

Ease When Passing Down Assets

Having your children as members of your SMSF makes the act of rigorous estate planning that much easier. 

Therefore, when you and your partner pass away, the assets inside of the SMSF can be passed down without any pushback to all respective SMSF members.

Lower Costs

SMSFs as we know have running costs that are necessary for the operation of the retirement vehicle, however, these costs can be split between more members if you add your children to your SMSF. 

Therefore, the SMSF as a whole can reduce the average running costs of an SMSF drastically. 

Conclusion

Are you looking to set up your SMSF? Get in touch with the team at Supavest to discuss your next steps. 

Once your SMSF is setup, you can now begin your SMSF property investment journey in brand new house and land builds, anywhere across Australia. 

Get in touch with the team today! 

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