The comments by Jtaylor1 should be heeded by anyone who has or is contemplating a SMSF. According to some, if the ATO did an audit of all the SMSF's are great proportion would be deemed non complying.
For instance do you know what the Sole Purpose Test is? Do you have minutes of meetings of trustees? Do you have a documented investment strategy? Is your trust deed up to date? Is it a good deed? BTW if there is one place you are going to spend money make sure it is on the best trust deed money can buy, why because the trust deed dictates the rules of the fund, subject to the SIS Act, regs and ITA Act and regs
A SMSF can be a fantastic vehicle for transferring of assets, estate planning and tax effective retirement income but unfortunately most accountants can only give you very limited advise
At the moment a lot of people have flocked to a SMSF which really is akin to giving your kids a loaded gun, a bit dramatic but the resposibilities on the Trustees are great and mistakes can render your fund non-complying and the tax consequences are large. Worst still you can be prosecuted and fined/gaol term for fraudulant acts.
Do it right with the right advice and you can do very well, intergenerational SMSF's are possible as is borrowing under certain arrangements
