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6 Comments

  1. Rob O'Donnell

     /  January 25, 2017

    Hi Liam, I presume at step 6 you get the bank account to a zero balance even though it remains open? The accountants I work with want a closed account to prepare final accounts from.

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    • Hi Rob

      Yes I believe it is often preferable to have the bank account closed especially if the final tax return is expected to be a refund. The refund can be paid to the Accountants trust account normally.

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  2. Nick Sumbeiywo

     /  November 6, 2015

    What if members have met a condition of release and wish to transfer shares in the SMSF to their individual names when they wind up? Do they still have to convert the shares to cash first?

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    • Hi Nick

      In general if a member has met a full condition of release they can take a lump sum payment in the form of an in-specie transfer of shares from the fund before winding it up. You cannot take them as a regular pension payment so the lump sum is the only option. Otherwise if you are winding up the fund you could look for a Super or Pension Wrap that will accept the in-specie rollover of the shares from the SMSF. You should see personal tax and financial planning advice to address your personal circumstances and always talk to your Share Broker beforehand to assess their charges as they often charge $55 per transfer but you can often negotiate for multiple transfers.

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  3. I find that listed/public unit trusts can often cause admin issues with winding up SMSFs. Trustees will understandably want the fund wound-up before the end of the financial year so as to not pay an extra years supervisory levy and other costs, but the tax statements for unit trusts or wrap accounts holding unit trusts aren’t available until August/September the following financial year. Planning for winding-up a SMSF should start well ahead of the planned wind-up date.

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    • Good point Luke. As most people are choosing when to wind up a fund rather than it being forced, my suggestion would be to redeem any unit trusts in this financial year and wind up the fund at then end of the following year. This will save on Accounting costs of doing interim accounts.

      Thanks for the input.

      Liam

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