Lump Sum
The lump sum order form and documents have been enhanced as part of the migration to the new document platform
The form can be populated using any of the integrations with BGL, Class or SuperMate:
As part of the integration, the details of the member can be selected that will include their name, date of birth and address. The DOB will be used in determining their age at the time of the lump sum.
The form asks whether the member has previously met a condition of release - if yes, this will be reflected in the trustee minutes in making the lump sum.
If the answer is ‘no’, it will allow you to select the condition of release that has been met, and this will be reflected within the member request and trustee minute as part of paying the lump sum.
Details of the condition
Where you choose a condition of release with a cashing restriction - i.e. compassionate grounds or severe financial hardship, additional information is included on the screen to highlight the lump sum restrictions contained within the superannuation laws.
Compassionate grounds
Severe financial hardship
As part of the payment details, you will be required to include the powers of pay the lump sum under the fund’s deed. A tool tip is included to show Rule 25 is the relevant rule number in the Smarter SMSF deed.
By inputting a lump sum payment date, it will automatically calculate the member’s age in the form. You will input the amount of the lump sum.
The form allows you to choose whether the lump sum is a cash payment or is being made as an in-specie lump sum, by way of asset transfer(s).
If cash, the generated order will reflect this based upon the lump sum amount listed above.
If in-specie asset transfer, you will be required to include the trust deed rule/clause providing the relevant powers (Smarter SMSF rule is included in tool tip).
You have the ability to list up to 10 x assets as part of a single lump sum transfer on a particular date. The relevant number of fields will display based upon the number chosen in the drop down.
Under Asset #1, we have provided a detailed description of how you should display the information of the asset for the purposes of generating the completed order.
We have included a ‘checking’ tool to ensure that the lump sum amount chosen within the form equals the sum of the assets being transferred at their market value.
Prior to completing the order, you can review the form details before submitting.
As a Create document subscription member, the document can be submitted and an order will be deducted from the counter. For PAYG orders, you will need to make payment by credit card as part of submitting the order.
Completed order
Once the order is completed, the following documents are generated:
- Member request for lump sum
- Trustee meeting - condition of release, authorisation of payment and form of lump sum (cash or in-specie)
- Trustee notification to member of lump sum
- Lump Sum Schedule (in-specie only).