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Is this a must to do a Deed of Variation or amendment to the SMSF's deed (irrespective of the trustee structure i.e. individual / corporate) when there is a marriage breakdown and one of the spouses who is a member decides to leave the SMSF? If so, under what Act?
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Hi Peter
My view is that a Trust Deed does not have to mention crypto for the Fund to be able to invest in it on the basis that the deed allows for the Fund to be able to make any legally allowed investment that complies with the SIS legislation. Most deeds are written broadly to allow for a Fund to be able to invest in any legally allowed investments (& assuming it complies with the Fund's investment strategy).
I had a look at a deed that was varied back in 2017 & note that it does refer specifically to crypto & it notes:
"The Trustee may acquire, hold and invest in any currency (including cryptocurrency,
such as bitcoin). This currency may be maintained in Australian denomination ($AUD) or as a non-AUD$ cash account."
Again this deed was written broadly to allow for the Fund to be able to invest in any legally allowed investments (& assuming it complies with the Fund's investment strategy).
Thanks
SMSF AAA
Within context of acquiring crypto, are old Trust Deeds an issue even where the Deed authorises investment in "precious objects..gold, ....coins ...precious objects ...or ..similar objects .?" Must the Deed specifically mention "crypto" to avoid a qualification ?
Hi Md
It is not a SIS legislative requirement to amend the trust deed once a member or trustee leaves or joins a SMSF.
The trust deed itself will dictate if a deed of variation is required in such a situation. For example some trust deeds state that a deed of variation is required when a Fund goes from individual trustees to a corporate trustee. As an example following a marriage split a Fund could go from 2 individual trustees to a company as trustee with 1 director. As noted in this situation the trust deed may require a deed of variation be prepared.
That is the answer to your question will be in the Trust Deed and not in the legislation.
Thanks
SMSF AAA