If you were asked by your accountant to hand over a blank cheque so that they can complete a tax return?ould you?
A client came to me recently asking about a Limited Power of Attorney. Heffron Consulting, Australia’s largest Self Managed Superannuation Fund service provider, has requested that my client sign a Limited Power of Attorney, so that Heffron can complete their SMSF return seamlessly and efficiently with new technology.
For those that are not up to speed with a Power of Attorney – in a nut shell, it provides the attorney (in this case Heffron) the ability to managed assets and financial decisions on behalf of the principal which in this case is my client and their Self-Managed Superannuation Fund.
I want to raise my concerns regarding this Limited Power of Attorney:
- Providing a third party with unnecessary authority and control could lead to detrimental outcomes on your retirement savings.
- Legally, it is not clear whether you can delegate your duties as a trustee to someone else.
- The reason you have a Self-Managed Superannuation Fund is to gain greater control over the fund (not give it up!?)
- A Limited Power of Attorney is not mandatory to complete the accounting work associated with a SMSF
So I ask those that have a Self-Managed Superannuation Fund, have you been asked to sign a Limited Power of Attorney?