- Control of Membership
At their heart the most success SMSF's hold the next generation as members of the Fund. When the senior members of the SMSF become mentally incapacitated the next generation has the power to step up as Leading Member and control the fund as well as looking after the senior Members of the Fund. However traditional SMSF's don't allow or enable this passing of control. Likewise many senior members of a family resist younger family members coming into the Fund for fear of losing control. This is not the case with the Leading Member SMSF.
- Control of Estate Planning
The passing of death benefits from a superannuation fund often goes to the deceased member’s estate which raises a problem of legal challenges under various State succession laws. The best method of passing death benefits without legal challenge is directly from a SMSF by way of lump sum or pension, depending on legal availability. With a Leading Member SMSF the benefit is the set of tools and resources enabling members to limit access to their superannuation benefits on their death to their lineage only.
- Control of Member Incapacity
Ideally if a member becomes incapacitated, either physically or mentally, the Trustee of the Fund, with the Leading Member’s oversight, will put in place a plan to look after the member using their superannuation benefits and in some cases the resources of the Fund. To provide absolute certainty a member may want to complete a set of Binding Incapacity Benefit Directions which provides a set of binding directions on the Trustee as to how an incapacitated member’s benefits are best to be deployed.