Following on from the previous blog on record keeping, below is yet another example which highlights the importance of record keeping for SMSFs.
Where it can go wrong – another real life example
Lost Deeds
L and M are members of the L & M Super Fund and are the original trustees. In 1993 a newly incorporated company called LM Holdings Pty Ltd was appointed trustee.
In 1997 the Fund buys a property. A title search for the property shows that ‘LM Holdings Pty Ltd’ is the registered owner.
In 2014 L and M divorce and M becomes the sole member of the Fund. A new trustee, Life after L Pty Ltd is appointed. [...]