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Can a SMSF acquire insurance policy from other SMSF they run ? or will it breach S66 ?
or allowable under 5% threshold of in- house asset ?
Appreciate your help.
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Hi SP
Section 66(2A)(iii) states (re life insurance) that a Fund cannot acquire an asset from a related party unless it is:
"is a life insurance policy issued by a life insurance company (other than a policy acquired from a member of the fund or from a relative of a member)"
As a result of the above a Fund cannot acquire life insurance from a member or relative of a member.
My reading of the legislation is that a SMSF can acquire life insurance from another SMSF as it is not acquiring it from a member or a relative of a member.
If any other member has a view please let the forum know.
Thanks
SMSF AAA