Naming conventions for SMSF-owned life insurance policies

Ensure your clients’ SMSF naming conventions are set up correctly.

All superannuation funds operate as trusts and although trusts are treated as taxpayers for the purpose of tax administration, they are not actually considered a separate legal entity. A trust is an agreement created by a trust deed where an obligation is imposed on the trustee to hold and manage assets for the benefit of beneficiaries. This means that the SMSF trustee(s) is always the legal owner of assets held within SMSFs, so ownership of an SMSF-owned insurance policy should be documented as “[Name/s of Trustee] ATF [Name of SMSF]”.

Zack and Kara Lang are individual trustees of their SMSF, “The Lang Family Super fund”. If life insurance cover is housed within their SMSF, ownership on application forms and policy documents should be listed as: 
               Zack Lang & Kara Lang ATF The Lang Super Fund

Luke and Shona Miller are directors of Miller Family Pty Ltd, the corporate trustee of their SMSF, “We’re the Millers super”. If life insurance cover is housed within their SMSF, ownership on application forms and policy documents should be listed as:
               Miller Family Pty Ltd ATF We’re the Millers super