STRATEGY
Closing the SMSF chapter
The choice to wind up an SMSF is not one to be taken lightly because doing so is absolute. Tim Miller takes a look at what to consider during this decision-making process.
TIM MILLER is education manager at SuperGuardian.
34 selfmanagedsuper
Every year since 2018, almost as many SMSFs have been wound up as have been established. The decision to wind up a fund should not be taken lightly as once a fund is wound up there is no turning back. Winding up an SMSF is in many instances a far bigger decision than establishing one because the trustees are no longer dealing with a blank canvas and are now left with the likelihood of deconstructing many years’ worth of work.
One of the most important elements of winding up a fund, regardless of where the members sit in the superannuation life cycle, is time. Ultimately, trustees need to have options with regards to all the moving parts associated with being a superannuation member while they start and work through the process of closing down the SMSF and so they need to afford themselves sufficient time to get the job done. Time is not the only issue. Other important elements also exist and are identified
