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Adding children to super funds

There are financial benefits to including children in a super fund, such as the increased pool of assets created over time that can allow for a greater diversification of assets.

Parents also choose to invite their children to join their super fund as it allows them to provide their children with a financial education on how to manage money and appreciate the benefits of super.

However, there are a variety of issues to think about before including children in the super fund.  The super fund will have a wide range of ages, which can present challenges associated with parties that have different needs.

Also, all members of a DIY fund with a corporate trustee are expected to be actively involved directors of the fund. This means that the children will also be expected to be directors of the fund and will, therefore, play an important role in the fund’s decision-making. Although the children may be happy to leave the fund’s investment arrangements as they are, will they be in the future when their circumstances may change?

The handling of situations listed above will need to be mapped out before children are invited to join the super fund to avoid any arguments or confusion.

Posted on 10 January '14 by , under Super.

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What to consider when consolidating your super

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

  • Exit fees
  • Insurance policies
  • Investment options
  • Ongoing service fees
  • Performance of the funds

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready:

  • Your tax file number.
  • Proof of identity. This could include your driver's license, birth certificate or passport.
  • Your fund's superannuation product identification number (SPIN).
  • Your fund's unique superannuation identifier (USI).
  • Details of your previous fund.

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