It couldn't happen - could it?
If ever there was a powerful motivating force for people to complete Enduring Powers of Attorney, it lies in the depths of your Self Managed Superannuation Fund (SMSF).
Most of you would have what is known as a 'complying' SMSF which means it has all the tax concessions and benefits of being compliant with the tax laws.But if your spouse has died leaving you as the sole trustee of your SMSF and then you lose capacity to make your own decisions, what happens to your position as the sole trustee of your SMSF as you can no longer perform the role?
Your Enduring Power of Attorney can perform the role but, if you have not appointed one, this could leave your SMSF in a precarious state. The tax law says that unless someone such as an Administrator is appointed by the Queensland Civil and Administrative Tribunal within 6 months of you losing capacity, your SMSF then becomes non compliant with all the odious tax consequences that has.
Do you really want that fear hanging over you and your family - best do an Enduring Power of Attorney today!
Posted on 21st March 2011