Previously families with more than four family members were limited from having the entire family in the one Self-Managed Superannuation Fund (SMSF). However, this has now changed, from 1 July 2021, the maximum number of members has now increased from four to six members.
Therefore, if you had previously considered adding your adult children to your SMSF, but were limited, now might be the time, there are some advantages in doing so.
Five Advantages of adding adult children to your SMSF:
- Administrative costs - Previously if families larger than four wanted to have all the members in an SMSF, the only option was to create two SMSFs. This incurs extra costs and administration. This is no longer the case up to six member families.
