A self managed super fund has become a popular option to consider investing in but you must think carefully. Most people don’t realize that they need to have a trustee for their accounts and you must think about how competent your trustee is. Now, it might not seem all that important but actually it is. So, how competent is your SMSF trustee?
No Competency Tests
Unfortunately, in life there aren’t any real competency tests and that does also include choosing a SMSF trustee. You can choose anyone to be a trustee but that doesn’t instantly mean they are the right person for the job. It isn’t a matter of whether you can pick a person but rather how competent that person is of taking on the responsibility. There aren’t any competency hearings and it makes choosing a new trustee difficult especially for those who believing they’re choosing honest people and it turns out they aren’t. If you want to know more, check out smsfselfmanagedsuperfund.com.au.
How Responsible Are They?
When you want to know how competent your SMSF trustee is, you need to think about the person in general. You need to know whether or not they are actually responsible. If you don’t know the person well, then it could be a bad idea to choose them for your new trustee. However, if you know the person, think long and hard about whether they are truly responsible or otherwise. Think whether or not the person can be trusted and whether they are responsible to make tough decisions. Responsibility is an important factor for rating the competency of a self managed super fund trustee.
Do They Have Any Past Convictions That Include Theft Or Embezzlement?
Let’s be honest, anyone can make a mistake in life and pay for their crime but for SMSF trustees, they cannot be convicted of a crime which involves embezzlement or theft. It may seem a little unfair especially if a person has turned their life around but it’s something to consider. A potential trustee needs to be free from conviction of money related crimes and convictions. If you are a little unsure of this, why not check out smsfselfmanagedsuperfund.com.au for more info.
Bankrupted Individuals Aren’t Trustee Material
For those who have been named bankrupt in the past, they are not going to be rated as competent individuals to become a trustee. This is something most people will find out as soon as they begin to search for their new trustee. However, there may be some instances which previously bankrupt individuals are allowed to become a trustee but in very few circumstances. A self managed super fund does have strict regulations over who can become a trustee.
Know How Competent Your SMSF Trustee Is
It will be important to think long and hard as to how competent your potentially new SMSF trustee is. Now, if you don’t trust someone then it’s useless to choose them. It will be important to take the time out and think which person will be the best as your new trustee. If you would like to know more about SMSF trustees, check out smsfselfmanagedsuperfund.com.au to find out more information.