This document discusses the pros and cons of including children as members of a self-managed superannuation fund (SMSF). Some potential benefits include teaching financial literacy, allowing up to 4 members, and facilitating inter-generational transfer of family assets. However, risks involve children having access to fund resources, relationship breakdown impacting the fund, and control issues upon a member's death. Considerations include segregating children's benefits and the inability of minors to act as trustees. The conclusion is that adult children should generally not be SMSF members due to differing needs and family situations.

1. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
SHOULD CHILDREN
BE MEMBERS OF
YOUR SMSF?

2. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
What You’ll learn:

3. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
What You’ll learn:
Whether or not
It’s a good idea.

4. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
Let’s start
with the pros

5. Financial literacy
Teaches your children
to understand
money

6. You can have up to
Members in an SMSF
4

7. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
Introduce your
teenager to your smsf

8. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
Introduce your
teenager to your smsf
When they start work
And start receiving
Small amounts of super

9. They will become
Actively involved
In the investment
Of their super
savings

10. And will already Be ahead
of the Majority of people When
it comes to savings and
Wealth creation

11. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
Another benefit...

12. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
Another benefit...
Inter-generational
transfer of family assets

13. Like a farm
Or family business
property

14. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
what about the
cons?

15. Hands in the
cookie jar

16. Making your children
Members gives
Them Access to the
resources Of the fund

17. Relationship
breakdown

18. Relationship breakdown
Nothing is beyond
The reach of the
Family court

19. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
Control on death

20. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
Control on death
Who has control will
be the most factor
important When carrying
out the wishes of
a deceased member

21. considerations

22. make sure
the child’s
benefits are
segregated
From the
parents
assets within
the fund

23. Minors cannot
act as trustee
until they are:
18

24. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
Don’t invite adult children to be
a part of your smsf.
Their needs, motivations and family
situation are very likely,
different to yours.
conclusion

25. Should
children
be
members
your
SMSF?
-­‐ Posi6ves
-­‐ Considera6ons
-­‐ Nega6ves
-­‐ What
if?
-­‐ Conclusion
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This post originally appeared on Superfund partners