Loss of trustee capacity in SMSFs
Published Date: 15 Sep 2025
Self managed superannuation funds (SMSFs) offer Australians greater control over their retirement savings. The responsibilities of managing an SMSF fall on the shoulders of the trustees. These responsibilities require a high level of mental capacity to make sound investment decisions and ensure that the fund complies with superannuation laws. When a trustee loses capacity, the smooth operation and compliance of the SMSF can be jeopardised. This article explores the critical issues surrounding the loss of trustee capacity in SMSFs. It examines the importance of the trust deed, the process for replacing an incapacitated trustee, alternative solutions when no family member or legal representative is available, the role of the SMSF adviser, the role of the SMSF auditor, and strategies to manage digital access in the event of incapacity. When considering the loss of capacity of a trustee, this article also assumes (unless otherwise stated) that the same issues and concerns arise on the loss of capacity of a director of a corporate trustee.
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Details
- Published By: Neal Dallas CTA
- Published On:15 Sep 2025
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