SMSF Deed of Variation: Why is the 'Variation Clause' data field now optional?

Keywords: SMSF deed of variation, variation clause, Fund profile, Trust Register 

 

Question

In the SMSF Deed of Variation form, why is the 'Variation Clause' data field now optional?

 

Answer

The "Variation Clause" data field in the SMSF Deed of Variation document form has been made optional as there is no reference to the clause within the generated documents. Importantly, however, this does not change the requirement to ensure there is a relevant variation clause in your Deed, and that any specific procedure for varying the Deed is followed. 

 

Please carefully read the following information, taken from the SMSF Deed of Variation document description:

A SMSF’s Governing Rules should be updated due to the dynamic nature of the relevant laws. In doing so, great care must be taken to ensure that the variation is in accordance with the existing trust deed’s requirements for varying the rules which may include, for example, limitations on which of the Deed’s provisions may be varied or the requirement of consent by certain other parties. Any prior amendments must have also been made in an appropriate and valid manner.

If the Deed of Variation does not comply with the requirements of the existing Deed or prior amendments have not been validly executed, the variation may be ineffective and this may result in significant regulatory, tax, stamp duty and commercial consequences for the Fund. Therefore, if you are not 100% confident in preparing this Deed of Variation, or not engaging your own solicitor or specialist for their review, then it is strongly recommended that you add on our legal review service to your order.

 

The 'Variation Clause' field is also useful if you are a Super Comply user. Please refer to the section below for further information.

 

Please note also the following warning message which has also been implemented in the document form:

 

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For Super Comply users:

By entering a variation clause number within the 'SMSF Deed of Variation' form, the 'Variation Clause' section within the relevant Fund Profile will automatically update when you complete the form. 

If a variation clause number is not provided in the 'SMSF Deed of Variation' form, then the 'Variation Clause' section within the Fund Profile will remain the same as previously provided by the user. 

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Further Information

SMSF Deed of Variation

 

 

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