Grants SMSF Power Plays - Edition One

Damn that Unrealised Gains Tax

What is wrong with the SMSF adviser community - where are the strategies, the ideas, ways to minimise or reduce this disaster.  No-one has said taxing unrealised gains in super is a good idea except the Government and many are wondering if this is the thin edge of the wedge - what's next?  Taxing unrealised gains on family homes over $3M?  This is a dark track we are on.

Anyway, I have come up with 8 strategies to put in play now or later.  This edition of my SMSF Power Plays I am going to give you two plus for those that wander over to my website and subscribe https://www.grantabbott.com/exclusive-access I will make sure that you get the other six next week, plus the first two audio chapters - read by me, of my sold out Family Wealth Protection for your bloodline for generations to come with more coming each week.  No cost - so save on audible!

Strategy One - Retired - Pull out and use your Family

This is time sensitive as must be done before 30 June 2025.  Look at the amount you are above $3M, withdraw it and contribute it back in up to your maximum non-concessional cap - $480,000 in June if you use a contributions suspense account.  But you must be under 75 to make the contribution.

And while you are there do the same for your spouse, your children and your grandchildren,  Your SMSF can have six members to it is an $18M cap you have to worry about not a $3M.  You probably don't have that much but it is the thought, the strategy that is important.  Start with the spouse and work down in generosity.  But on the Family Wealth Protection side - it is good to protect from creditors and the trustee in bankruptcy but it is matrimonial property - so be crafty.

Strategy Two - Retired - Build a Family Protection Trust

This is the simplest, smartest and most protective of all and also gets around the nasty death benefits tax on adult children when you die.  Use Strategy One to increase the spouse's benefits and then transfer any surplus to a Family Wealth Protection Trust.  But it has to be bloodline beneficiary limited with splitting capabilities for children so there is no capital gains tax or duties on your death.  The mechanism for the transfer is withdrawal and deed of gift.  Plus you can help out the family - which you can't do with a SMSF (as it breaks the laws).  So do interest free loans and let them renovate or buy property - just make sure the loan is written, enforceable and take a registered mortgage.  This protects against creditors, ATO and family law.

Next edition we will look at more advanced strategies and how to segregate and a great solution for large property holdings - no one has thought about!  Plus I have some others up my sleeve - 13.22C trusts, split capital and income, reserving, recalibrating and options.