SMSF trustees are required to consider whether to hold insurance on behalf of a member as part of the fund’s Investment Strategy. Where insurance is held, there are several rules and issues to be considered to ensure compliance with SIS and the Tax Act. 

This webinar will review the SIS rules for the types of insurance that an SMSF can hold on behalf of a member, as well as the tax deductibility rules under the Tax Act. We will also review the affect of the transfer balance cap on a death benefit pension that includes insurance proceeds and the latest on transferring a death benefit pension, that includes insurance proceeds, from one fund to another. 

Learning outcomes:

• List the types of insurance permitted by SIS that an SMSF can hold on behalf of a member.
• Explain the requirement for insurance to be considered as part of an SMSF’s Investment Strategy.
• Compare the rules for deductibility of the cost of insurance.
• Assess the transfer balance cap consequences of an SMSF receiving insurance proceeds on the death of a member.
• Evaluate the recent changes concerning the transfer of a death benefit pension between funds.