There are financial benefits to including children in a super fund, such as the increased pool of assets created over time that can allow for a greater diversification of assets.
Parents may also choose to invite their children to join their super fund as it allows them to provide their children with a financial education on how to manage money and appreciate the benefits of super.
However, there are a variety of issues to think about before including children in the super fund.
For example, adding children means the super fund will need to cater to a wider range of ages, which can present challenges for parties that have different needs.
Also, all members of a DIY fund with a corporate trustee are expected to be actively involved directors of the fund. This means that the children will also be expected to be directors of the fund and will, therefore, play an important role in the fund’s decision-making.
Although the children may be happy to leave the fund’s investment arrangements as they are, will they be in the future when their circumstances may change?
The handling of situations listed above should be mapped out before children are invited to join the super fund to avoid any arguments or confusion. Get in touch with us today if you’d like to chat further about this option!