SMSF Advice Checklist for Client Reviews by hcj

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									SMSF checklist
Fund details
1. SMSF Fund name                                                       □   …………………………………………………….
2. SMSF trustee name (s)                                                □   …………………………………………………….
3. Member names                                                         □   …………………………………………………….

4. Adviser name                                                         □   ……………………………………………………..

5. Review date
                                                                        □   ……………………………….


General
Appropriateness                                                         Action required:
1. Do members still live in Australia?                       Yes / No   □   If no to any of these questions consider if possible to replace member as
                                                                            trustee with legal representative, convert to small APRA fund or close
2. Has any member become bankrupt?                           Yes / No       SMSF.
3. Can members still manage the duties of trustee?           Yes / No
4. Are all trustees eligible and not disqualified persons.   Yes / No
Membership changes                                                      Action required:
1. Have any members left or new members joined?              Yes / No   □   Ensure ATO trustee declaration completed for new members.
                                                                        □   If individual trustees, determine if investment ownership details need to
                                                                            be amended.
                                                                        □   Ensure trustee/member rules not breached.
                                                                        □   Ensure ATO is notified (within 28 days) of changes in membership or
                                                                            trustees.
Compliance                                                              Action required:
1. Is the fund at risk of failing the compliance test?       Yes / No   □   Review latest compliance audit report to determine whether any SIS
                                                                            provisions have been breached.


RI Advice Group Pty Ltd | ABN 23 001 774 125 AFSL 238429
SMSF Checklist



Investment advice and management
Investment strategy                                                     Action required:
1. Does the SMSF have a documented investment                Yes / No   □   Review and update the investment strategy as necessary. Complete
   strategy?                                                                trustee minute for changes/no changes.
2. Has it been updated within the last 12 months?            Yes / No   □   Review/rebalance portfolio as necessary and ensure sufficient cashflow
                                                                            to meet liabilities and payments.
3. Are all current investments in line with the investment
   strategy?                                                 Yes / No   □   Check that recommended investments are on the RI Advice APL and fit
                                                                            with documented strategy or amend as appropriate.
                                                                        □   Retain a copy of investment strategy on client file.
Investment ownership                                                    Action required:
1. Are all investments held in the name of the trustee?      Yes / No   □   Make required changes to ownership.
2. Are investments insured (physical assets) and safely                 □   Check that insurance policies cover current market value.
   held?                                                     Yes / No   □   Inform SMSF to establish separate bank account for SMSF if required.
3. Does the SMSF have a bank account that is separate
   to other accounts of members?                             Yes / No

Investment restrictions                                                 Action required:
1. Did the SMSF purchase any assets from members in          Yes / No   □   Check that acquisition rules were not breached and rectify errors.
   the last year?                                                       □   If the 5% limit is exceeded either sell some in-house assets or inject
2. Is the value of in-house assets within 5% of the fund’s   Yes / No       more capital into the SMSF.
   balance?                                                             □   Retain a schedule of in-house assets on client file.
3. Did the SMSF borrow money or enter into an                Yes / No   □   Review structure of borrowing to ensure no breaches and put in place a
   instalment warrant arrangement?                                          strategy to ensure repayments/ obligations are met.
4. Does the trust deed contain any investment                           □   If trust deed contains restrictions relating to your advice, recommend
   restrictions?                                             Yes / No       client seek legal advice.
                                                                        □   Retain a copy of trust deed on file.




RI Advice Group Pty Ltd | ABN 23 001 774 125 AFSL 238429                                                                                             2
SMSF Checklist



Contributions
Non-concessional                                                      Action required:
1. Have members made contributions since 1 July 2007?      Yes / No   □   Record details of all contributions in file.
2. Have members made contributions in current financial               □   Determine available contribution cap.
   year?                                                   Yes / No   □   Review contribution strategies and levels.
3. Have all contributions been allocated to members’
   accounts?                                               Yes / No

Concessional                                                          Action required:
1. Have contributions been made for members in current     Yes / No   □   Record details of all contributions in file.
   year?                                                              □   Determine available contribution cap.
2. What contributions are expected for rest of financial   Yes / No   □   For deductible member contributions, ensure notice of deductibility has
   year?                                                                  been sent to fund trustee and confirmation has been received by client.
3. Do members expect a pay rise or bonus before the end    Yes / No   □   Review contribution strategies and levels.
   of financial year?
4. Have all contributions been allocated to members’
   accounts?                                               Yes / No
Business sale                                                         Action required:
1. Has any member sold a small business asset (eligible    Yes / No   □   Consider opportunities to contribute sale proceeds under small business
   for CGT concessions)?                                                  CGT cap.

In-specie contributions                                               Action required:
1. Has the client made or is intending to make an in-      Yes / No   □   Ensure the asset has been properly valued for contribution cap and CGT
   specie contribution?                                                   purposes.
                                                                      □   If it is the client’s decision to transfer the asset, ensure your advice
                                                                          document reflects this.




RI Advice Group Pty Ltd | ABN 23 001 774 125 AFSL 238429                                                                                             3
SMSF Checklist



Estate planning
Death nominations                                                      Action required:
(accumulation & pension phase)
                                                                       □   If no nomination, review strategies with members to determine if
1. Has the member made a valid death benefit                Yes / No       appropriate to set up.
   nomination?                                                         □   If nomination held, check that it is in the form required by the trust deed,
2. Does the SMSF trust deed allow a binding nomination?     Yes / No       the nomination is still appropriate and the nominated person is a SIS
                                                                           dependant.
3. Is a binding nomination held?
                                                            Yes / No   □   Ensure member’s Will is drafted to match the super death benefit
4. Is the nomination valid and current?                                    strategy.
                                                            Yes / No
                                                                       □   If starting a new pension, consider issues for reversionary pensioner,
                                                                           death benefit nomination or trustee discretion.
                                                                       □   Amend trust deed if necessary.
Reserves                                                               Action required:
1. Can the SMSF set up a reserve to fund future anti-       Yes / No   □   Develop/review the reserve strategy if appropriate.
   detriment payments?                                                 □   Amend documented investment strategy or investments held as
2. Are reserves invested in line with the investment                       appropriate.
   strategy?                                                Yes / No


Insurance policies                                                     Action required:
1. Do members hold insurance inside the SMSF?               Yes / No   □   Check that the trust deed allows the fund to hold the required level of
                                                                           insurance.
2. Are insurance levels and types still appropriate?
                                                            Yes / No   □   Review and amend insurance policies as appropriate.
3. Does the fund have sufficient cashflow to cover
   premium cost?                                                       □   Consider if policies should be transferred outside super.

4. Is purpose of insurance to increase member benefits or   Yes / No   □   Determine if contributions should be increased to cover premiums.
   for insurance reserving strategies?                                 □   If using reserving strategy, ensure it is allowed under the trust deed and
                                                                           arrangements are structured appropriately.
                                                            Yes / No



RI Advice Group Pty Ltd | ABN 23 001 774 125 AFSL 238429                                                                                                  4
SMSF Checklist



Benefit payments
Lump sums                                                                Action required:
1. If a lump sum is needed, does the client meet a            Yes / No   □   Only proceed if a condition of release can be met.
   condition of release?                                                 □   Calculate tax for a client under age 60 and consider strategies to
2. Is the client under age 60?                                Yes / No       manage tax and impact on taxable income.
3. Is the client planning to claim a deduction for personal   Yes / No   □   Ensure notice of deductibility has been sent to fund trustee and
   contributions this year?                                                  confirmation has been received by client before lump sum is withdrawn.
                                                                         □   Advise changes to Centrelink/DVA if appropriate.
                                                                         □   Determine which investments should be sold to make the payment.
                                                                         □   Record details of all contributions in file.
Pensions (new)                                                           Action required:
1. Is any member over age 55 or met a condition of            Yes / No   □   Review strategies for pensions.
   release?                                                              □   Ensure notice of deductibility has been sent to fund trustee and
2. Is the member planning to claim a deduction for            Yes / No       confirmation has been received by client before pension commences.
   personal contributions this year?                                     □   Revise investment strategy and determine pension drawdown strategy.
3. What level of income does the member require for the                  □   Make changes to investments if required.
   current financial year?                                    Yes / No   □   If TTR, check the available contribution caps and set up appropriate
4. If TTR, can the member salary sacrifice?                                  strategies.
5. Is current investment strategy still appropriate?                     □   Check how long pension is likely to last with selected income drawdown.
                                                              Yes / No       Assist clients with trade-off/strategy to manage longevity risk.
                                                                         □   Check that investments are segregated for tax exemption.
                                                              Yes / No
                                                                         □   Advise changes to Centrelink/DVA if appropriate.
                                                                         □   Record details of pension in file.




RI Advice Group Pty Ltd | ABN 23 001 774 125 AFSL 238429                                                                                               5
SMSF Checklist

Benefit payments
Pensions (existing)                                                   Action required:
1. If TTR strategy, does the member wish to consolidate    Yes / No   □   Consider implications for commuting pension and combining with any
   accumulation and pension?                                              accumulation balance.
2. What level of income does the member require for the               □   Review annual minimum payment (and maximum if TTR) and ensure
   current financial year?                                 Yes / No       this will be paid.
3. Is current investment strategy still appropriate?                  □   Check how long pension is likely to last with selected income drawdown.
                                                                          Assist clients with trade-off/strategy to manage longevity risk.
                                                           Yes / No   □   Check that investments are segregated for tax exemption.
                                                                      □   Revise investment strategy and pension drawdown strategy.
                                                                      □   Advise changes to Centrelink/DVA if appropriate.




RI Advice Group Pty Ltd | ABN 23 001 774 125 AFSL 238429                                                                                            6

								
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