I have one SMSF where one trustee died during April 2023, but the Fund was converted from individual to corporate trustee only in march,2024 in order to meet definition of Section 17A.
I am doing Audit for 2022-23, can I qualify the Audit report for violation of Sec. 17 A during period from end of April to till February, 2024.
Kindly advise on this issue. Generally how much time is allowed in above case for remaining trustee to take action.
Hi
Yes section 17A of SIS covers who the trustees need to be.
If a member dies under section 17A of SIS their legal personal representative can act as trustee in their place from the date the member dies and ending when the death benefit is paid. When the legal personal representative ceases as trustee the Fund has 6 months to take the necessary action to comply with section 17A of SIS.
Thanks
The Auditors Institute