The incapacity conundrum and SMSFs – planning for the (mostly) inevitable

It's important that advisers raise the possibility of incapacity at the earliest opportunity.

Advisers play a key role in advising trustees and members on the initial structure of a fund, as well as the ongoing operation, management and compliance of the fund generally. For this reason, it's important that advisers raise the possibility of incapacity at the earliest opportunity and assist members in implementing strategies to address what will happen on the incapacity of each member.

What you need to know

The likely outcome on the incapacity of each member should be raised pre-emptively, and the associated risks understood and addressed in a way that takes into account each member's circumstances and succession planning requirements. In particular, it is important to consider: