SMSFs now account for over 30% of the Australian superannuation market with more than 1 million SMSF trustees in Australia.
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.
What is a “Family Superannuation Fund’?
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.