About the Product
The Leading Member SMSF is an SMSF that focuses on the succession of an SMSF to lineal descendants of the Leading member and the passing of superannuation benefits to lineal descendants via pensions or lump sum distributions.
This upgrade RPA kit is packaged with an upgrade to the Leading Member SMSF Deed and the added benefit of the Leading Member SMSF Special Purpose Corporate Trustee. This kit also includes template strategy text for use in client file notes, advice documents and the likes.
Prior to proceeding, you should determine that the existing Trust Deed allows the trustee to vary the deed (as defined in the Substituted Governing Rules of an existing fund). The rule under which this is noted will be referenced in the assembled documentation.
Can this document be digitally signed?
NOT RECOMMENDED. As this document, or pack of documents, includes the establishment of a deed and/or a signature requires witnessing, TGA Legal have advised that a digital signature on any part of the assembled document is NOT legally binding. This is in accordance with all current legislation. LightYear Docs will regularly review this position as part of its internal review process.
General Information
The Leading Member controls the Trusteeship of the Fund as well as who the members of the Fund are (generally lineal) and what happens in the event of divorce, dementia or bankruptcy. The Leading Member has the power to deem a person, such as their spouse, as lineal.
One of the most important things for a high-net-worth client with sizable SMSF member balances is to provide asset protection and pass their wealth to their lineal descendants.
Benefits
Benefits of LightYear Docs Leading Member SMSF Deed
- Keeping the Family SMSF Wealth within the lineal descendants just as the English Royal Family does;
- Easy to read and understand;
- Only 28 pages long but filled to the brim with strategies;
- Written by Australia’s foremost legal, technical and strategic expert, Grant Abbott;
- Newly-authored and covering 2017 super changes, all ATO Rulings and guidelines and possible 2019 election changes;
- Not a bandaid, legacy product dating 20 years or more;
- Signed off by TGA Legal;
- Younger members can access older members’ imputation credits to ensure they are not lost; and
- Has a wide range of up-to-the-minute SMSF Estate Planning strategies.
Benefits of LightYear Docs Leading Member Special Purpose SMSF Corporate Trustee
- Flexible and matches the requirements of the Corporations Act 2001 for a special purpose corporate trustee;
- The Leading Member of the Fund is automatically appointed as chair;
- One Director – one vote rule with Leading Member veto power;
- The Leading Member can appoint or remove Directors;
- Only ordinary class of shares offered;
- On death of a member, the Board of Directors must appoint the deceased member’s LPR as a Director or lose its trusteeship;
- On death, only the deceased member’s LPR as a Director has a vote in relation to the payment of the deceased member’s death benefits; and
- All of the shares of the company are held by the Leading Member. On the death of the Leading Member, these shares are cancelled and new shares issued to the incoming Leading Member.
Frequently Asked Legal Questions
Can I get a sample of this document?
Yes, please email support@lightyeardocs.com.au to request a sample document for you to review.
How does a Leading Member SMSF differ from a standard SMSF?
The Leading Member SMSF is based on the LightYear SMSF with the added benefit of limiting Trustees and Members to lineal descendants via the use of a Leading Member. A Leading Member controls the Fund and succession planning for the Leading Member is catered for in the LightYear Leading Member SMSF.
Can my SMSF be upgraded to a Leading Member SMSF?
Yes, provided your existing SMSF Trust Deed allows for the substitution of governing rules. There are also no issues in relation to resettlement. You will need to plan for who is the Leading Member plus succession in the Leading Membership role. However, if you would like legal advice to that effect, contact our legal team – tanamourlis@tgalegal.com.au
What are the benefits of the LightYear Docs Leading Member Special Purpose SMSF Corporate Trustee?
- Flexible and matches the requirements of the Corporations Act 2001 for a special purpose corporate trustee;
- The Leading Member of the Fund is automatically appointed as chair;
- One Director – one vote rule with Leading Member veto power;
- The Leading Member can appoint or remove Directors;
- Only ordinary class of shares offered;
- On death of a member, the Board of Directors must appoint the deceased member’s LPR as a Director or lose its trusteeship;
- On death, only the deceased member’s LPR as a Director has a vote in relation to the payment of the deceased member’s death benefits; and
- All of the shares of the company are held by the Leading Member. On the death of the Leading Member, these shares are cancelled and new shares issued to the incoming Leading Member.
What lawyers sign off on the LightYear Docs Leading Member SMSF?
All LightYear documents are prepared and signed off by TGA Legal from Melbourne, Sydney and Brisbane.
Can this document be digitally signed?
NOT RECOMMENDED. As this document, or pack of documents, includes the establishment of a deed and/or a signature requires witnessing, TGA Legal have advised that a digital signature on any part of the assembled document is NOT legally binding. This is in accordance with all current legislation. LightYear Docs will regularly review this position as part of its internal review process.
Is the LightYear Docs Leading Member SMSF reviewed regularly?
All LightYear Docs documents form part of the LightYear Docs internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.
What happens after I purchase this document?
After you purchase this document, you will experience first-hand the power of our assembly engine, HotDocs. An interview session will appear in what is called the HotDocs iFrame. Through the use of the iFrame technology, we are able to create document templates in minutes, versus months of coding through other methods. The iFrame also allows for rapid integrations and documentation to be assembled instantly in "lines" or packs of documents.
Can I edit my document after it has been completed?
Your document will be available to edit from the LightYear Vault for 30 DAYS after you have completed the interview process, at which point it will be locked for future edits. Your completed documents will be listed under "My Vault" from the drop-down menu in the top right-hand corner after you login. This is also where you re-launch an "interview" to make edits within the first 30 DAYS.
Can I save a document to complete later?
Yes, provided you select save, you can exit the interview process at any time. All documents that have been purchased and not yet assembled will be saved under "My In Progress Docs" and are accessible from the drop-down menu in the top right-hand corner after you login. This is also where you re-launch an "interview" to continue the interview process and assemble your document.