Many people don’t consider that SMSFs can be used as a long term investment vehicle designed not only to control your superannuation and look after your retirement but to look after the needs of your family for generations.
A Family Superannuation Fund builds on the foundations of a SMSF. However, unlike a SMSF which would generally provide for your retirement savings, a Family Super Fund consolidates your family’s wealth into a single investment vehicle which can facilitate the inter-generational transfer of wealth. Think of it as a modern day family trust.
By establishing a Family Super Fund, benefits can be passed down from generation to generation, within the same fund.
Once your children start their own families, new Family Super Funds can be established from the existing Family Super Fund and be tailored to the needs of the siblings. This can ensure all family benefits and assets are held for the benefit of future generations.
For blended and split families, multiple Family Superannuation Funds can assist with splitting benefits between children, while still controlling and continuing to assist in growing the fund for their current and future needs.
Thus, family superannuation funds can provide protection from divorce, bankruptcy and claims against a deceased estate.
What would you do if you or your child was in an accident and incapacitated?
A Family Super Fund can create a self insurance policy to cover your family in the case of an accident or death. It can even provide cover for those who may not be able to obtain insurance.
The Family Super Fund can help to pay a benefit to the affected member to assist with their needs. All expenses can be paid out of the earnings from the fund and are tax deductible to the fund.
Sophisticated strategies such as borrowing within a Family Super Fund can allow you to safely borrow to acquire any worthwhile asset with the protection of predictable cash flows from contributions, thereby reducing the risks normally associated with borrowing to invest.
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