Benefits of Setting Up a New SMSF to Buy Property with Your Kids

So we're getting our head around self-managed super funds, but how about setting them up with your children?? What are the benefits of setting up a new SMSF to buy property with your kids?? A quick little snapshot below of things to consider...

1. Shared Goals: Pool resources with your kids to invest in property, aligning your

financial goals.

2. Wealth Transfer: Pass on property investments smoothly between generations,

keeping it in the family.

3. More Buying Power: Combining contributions means you can afford better or more

properties.

4. Tax Perks: Enjoy tax benefits on rental income and capital gains within an SMSF.

5. Control: Have more say in investment decisions, tailoring them to fit your family’s

needs.

6. Simplified Estate Planning: Easier to manage and distribute property assets

according to your wishes.

7. Shared Costs: Split the costs of managing the fund, making it cheaper for everyone.

However, there are also things you should consider...

Things to Consider

1. Regulations: SMSFs have strict rules. Make sure you follow them to avoid penalties.

2. Family Dynamics: Clear communication is key to avoiding conflicts when making

decisions.

3. Liquidity: Property isn’t easily sold, so plan for when members might need their

super benefits.

4. Exit Strategies: Have a plan for when someone wants out or needs their super, as it

can affect the fund.

5. Get Advice: Consult financial and legal experts to set up the SMSF correctly and

align with everyone’s goals.

Setting up an SMSF to buy property with your kids can be a great way to manage family

wealth, but it takes careful planning and good communication to make it work.

If you want to know more, contact me.

Michael is a highly experienced Chartered Accountant (CA) and also a Fellow certified practicing accountant (FCPA). He is also a qualified Financial Planner, and a business mentor.

General Advice Warning

The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to are of a general nature only and are based on Michael Mekhitarian’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.

Accuracy & Reliability of Information

Although every effort has been made to verify the accuracy of the information contained in this web site. Michael Mekhitarian, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.

The opinions expressed are Michael’s and are not necessarily the same as those of ATB Chartered Accountants and Business Mentors.