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The SMSF has a corporate trustee with a sole director & sole member. The member passed away in Nov 2020. The 2020 finnacial reports was signed by the Excutive of the member's estate. However, the excutive has not been appointed as director of the corporate trustee yet. I am auditing the the 2020 SMSF, I'd like to know:
Who is the legal represntative of the SMSF to sign off the 2020 financial reports and 2020 Trustee Represenattion Letter?
What document should be provided to prove the person signed off the financial reports is the legal represntative of the SMSF?
Did the fund fail to meet the s17 SMSF definition?
The fund is planning to wind up in the 2021 financial year, in that case, is the legal represntative still require to be appointed as the director of the corporate trustee?
Hi Linda
As per section 17A(3) of SIS if a member has died their legal personal representative (LPR) can be a director of the trustee company of the Fund (or act as an individual trustee). As the LPR has not been appointed within 6 months of the member's death this is a breach of section 17A(3). The 6 month rule is in section 17(4).
The LPR is defined in SIS as "the executor of the will or administrator of the estate of a deceased person".
Re your questions:
The LPR should be the executor(s) as referred to in the will.
You should obtain a copy of the will to determine who is the LPR.
Yes as noted above Section 17A has been breached as the LPR was not appointed as a director of the trustee company of the Fund (within 6 months of death).
Yes the LPR is required to be appointed as director of the corporate trustee.
Thanks
SMSF AAA