I have a client who bought some artwork for $12,000 and keeps it at home. I have breached him. He does not want to incur the cost of storing it outside in a secure place. Says it is insured separately with his home insurance.
He is 70 and still has employer contributions coming into his SMSF. In order to rectify this issue can the artwork be paid to him as a lump sum benefit in lieu of cash, provided proper valuation has been obtained at time of "payment". Of course he has to go into pension mode first.
Hi Jan
Based on his age, his balance should be unrestricted non preserved and therefore I believe lumpsum can be paid out from his accumulation interest. There is no restrictions to pay him as lumpsum based on proper valuation.