Since Superannuation Funds are a trusts, the tenant could sue the trustee, eg. if a tenant/visitor hurts themselves & the trustee would have a right to be indemnified out of the assets of the trust. Therefore, what about people who have their money in their normal employer's super funds that holds property? If something happens, these big super fund managers can just use your super money to indemnified themselves. Is this correct?
Superannuation Funds - holding property
- Thread starter thesuperman
- Start date
Depends on the structure. There would likely be several layers of entities involved. It is unlikley but possible.
I guess that's another reason not to have your super sitting with any of those super funds but have your own SMSF where you are one of the trustees, as it further protects your money incase something like that happens.
There are some advantages with industry funds. These industry superfunds are also subject to the Superannuation complaints tribunal which SMSFs aren't. There is also a fund to compensate members who lose money because of fraud - not available to SMSFs. eg. the case where the husband illegally withdrew his and his wife's money and fled to Turkey leaving his wife here. The wife got fined...
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