Selecting the Right Storage Facility for SMSF Trustees: Why Secure Vault Storage with WSVS Is the Best Choice
In Australia, the onus of managing the assets of a Self Managed Super Fund (SMSF) rests with the trustees who oversee it. A critical component of effective management involves the careful selection of an appropriate storage facility to safeguard important assets.
In light of the current changes in the financial sector, numerous banks are gradually discontinuing their safety deposit box services, hence creating an opportunity for the emergence of private vault enterprises such as Wealth Storage Vault Services (WSVS). This article aims to examine the significance of selecting an appropriate storage facility for trustees of self-managed superannuation funds (SMSFs) and the reasons why secure vault storage provided by WSVS is an optimal choice.
What items fall under Collectables and Personal Use Assets?
For trustees of self-managed superannuation funds (SMSFs), it is imperative to possess knowledge on the classification of assets as Collectables and Personal Use Assets. The act of allocating resources to these particular assets necessitates meticulous deliberation, and the imperative of safeguarding their worth necessitates their storage in a facility that ensures utmost security. For a comprehensive compilation of all products falling inside this category, kindly refer to the following hyperlink.
The following things are deemed appropriate for investment within your Self-Managed Superannuation Fund (SMSF) and can be securely stored within our private vault facility:
Jewellery & Diamonds: Safeguard your valuable jewellery collections or investment diamonds, including pink diamonds, rare gemstones and metals, in our state-of-the-art vault.
Gold, Silver and Platinum Bullion: Store your precious metal investments, such as gold and silver bullion, with confidence.
At WSVS, we pride ourselves on our unparalleled security measures and cutting-edge infrastructure, making us the ultimate destination for safeguarding your SMSF investments.
Secure your collectables and personal use assets in our state-of-the-art vault facility, complete with an all-encompassing insurance package. Rest assured, your valuable items will be safeguarded from any potential damage, including natural disasters, theft, and tampering. Experience unparalleled peace of mind by entrusting your treasures to our secure and reliable storage solution.
The ATO’s Requirements for Insuring Collectables and Personal-Use Assets
Since July 1, 2011, the Australian Taxation Office (ATO) has implemented a requirement that trustees of Self-Managed Superannuation Funds (SMSFs) must procure insurance for the assets acquired by the fund within a period of seven days. The acquisition of this insurance is not discretionary; rather, it is imperative in order to safeguard the assets of the fund and ensure the preservation of retirement benefits for its members in the event of unforeseen incidents or losses. The Australian Taxation Office (ATO) also emphasises the necessity of having the insurance policy registered under the name of the fund. This requirement serves to promote transparency and enhance the integrity of the fund by maintaining a clear separation between the fund’s assets and the personal assets of the trustee.
WSVS provides a comprehensive and tailored insurance and storage solution that is customised to meet the unique needs of every client. Our objective is to ensure a user-friendly and efficient experience. Please feel free to reach out to us for further details and to submit an enquiry.
The ATO’s View on Insurance for Collectables and Personal-Use Assets
To satisfy the ATO’s insurance requirements for collectibles and personal-use objects, the policy must be in the name of the SMSF, with the trustee being the legal owner of the policy in their capacity as trustee. The trustee must not delegate or rely on a third party to acquire and uphold risk coverage for a fund asset. The insurance policy may take on a unique form for individual assets or adopt a collective approach encompassing all assets. However, it is imperative that said policy is consistently registered under the fund’s name, irrespective of the asset’s valuation.
The Significance of Secure Storage for SMSF Assets
As the chief executive officer of a Self Managed Super Fund, it is essential to effectively manage a diverse portfolio of investments, including but not limited to collectibles, precious metals, gemstones, and other tangible assets. According to SIS Regulation 13.18AA, assets classified as Collectibles and Personal Use Assets must be insured and securely stored in a third-party, endorsed facility. The Australian Tax Office (ATO) requires periodic audits to ensure compliance with these regulations.
By implementing this strategic measure, we ensure the protection and conservation of SMSF assets, thereby complying with the trustee’s fiduciary obligation to serve the beneficiaries’ interests first and foremost. To begin the streamlined process of storing your valuables in our state-of-the-art facility, we respectfully request that you contact us as soon as possible.
Choosing the Right Storage Facility: The Imperative of Compliance
When contemplating investments in collectibles and personal-use assets, ensuring comprehensive protection goes beyond merely securing their storage. As trustees of self-managed superannuation funds, trustees are expected to adhere scrupulously to stringent regulations governing the use, presentation, and safekeeping of the funds’ assets. Collectibles and assets for personal use cannot be used by members or related parties, nor can they be kept at the residence of a related party.
However, they may be stored on the property of a related party so long as it is not their private domicile, but they may never be displayed where clients and employees can see them. It is prohibited to lease these assets to related parties, and any transfer to a related party must occur at market value as determined by a qualified, independent appraiser.
Why Secure Vault Storage with WSVS Is the Best Choice for SMSF Trustees
Compliance with Regulations: WSVS ensures compliance with SMSF requirements for secure storage of Collectables and Personal Use Assets. Our facility meets all necessary regulations and undergoes regular audits to maintain adherence.
Dedicated Insurance Services: Unlike conventional institutions, WSVS provides specialised insurance services for SMSF assets. Protect your investments with insurance policies underwritten by the largest insurance provider in the world, Lloyd’s of London.
State-of-the-Art Security: Our vault has reinforced steel walls and multiple security elements, including biometric access, surveillance, and motion detectors. The assets of your SMSF are safe from natural disasters, theft, and tampering.
Competitive Pricing: WSVS offers competitive pricing for insurance and storage services, making it a cost-effective choice for SMSF trustees.
Conclusion
The cautious selection of a storage facility is critical for trustees of Self-Managed Superannuation Funds (SMSFs) in order to maintain compliance with Australian Taxation Office (ATO) requirements and to secure valuable assets for future generations. Traditional financial institutions are withdrawing from the safety deposit box industry, creating an opening for private vault companies like WSVS to offer specialised and enhanced secure storage services.
Ensure the security of your SMSF assets with confidence by selecting WSVS as your dependable asset preservation partner. By adhering to regulatory standards, implementing cutting-edge security measures, providing competitive pricing, and offering specialised insurance services, our company ensures the safety of your money in your Self-Managed Superannuation Fund (SMSF).
By entrusting your assets to WSVS, you can relax knowing that your prized possessions are secure.
It is recommended that you contact us promptly to protect your SMSF assets by utilising WSVS, a reputable provider of secure vault storage services in the industry.
FAQ SECTION
1. Why is it essential for SMSF trustees to insure Collectables and Personal Use Assets?
A: According to the regulations put forth by the Australian Taxation Office (ATO), it is a requirement for trustees of Self-Managed Superannuation Funds (SMSFs) to obtain insurance coverage for the assets acquired by the fund within a period of seven days. Insurance serves as a safeguard for the assets of the fund and the retirement benefits of its members in the event of unforeseen incidents or damage to those assets. Additionally, this practise guarantees the segregation of assets from the trustee’s other holdings, thereby promoting openness and upholding integrity.
2. Can SMSF trustees rely on third-party insurance or general household insurance for collectables and personal-use assets?
A: According to the regulations set forth by the Australian Taxation Office (ATO), it is mandatory for insurance policies pertaining to these assets to be registered in the name of the Self-Managed Superannuation Fund (SMSF), with the trustee serving as the policy’s legal owner. Trustees are prohibited from delegating or depending on third parties to acquire and manage insurance coverage for the assets.
3. What are the rules for storing Collectables and Personal Use Assets owned by an SMSF?
A: These assets cannot be used by members or related parties. They cannot be stored in the private residence of a related party but can be stored in premises owned by a related party without being displayed. Leasing these assets to a related party is also not allowed, and they can only be sold to a related party at market value determined by an independent valuer.
4. What are some of the items eligible for investment in SMSFs and storage at WSVS?
A: At Wealth Storage Vault Services (WSVS), eligible items for investment and storage in SMSFs include jewellery, diamonds, Gold, Silver and Platinum Bullion + much more.
5. Why should SMSF trustees choose secure vault storage at WSVS for their valuable assets?
A: WSVS provides an independently owned, high-security vault facility constructed with concrete and reinforced steel walls, offering multi-layered security, 24-hour surveillance, biometric scanning, and dual-key systems. The facility has been specifically engineered to endure various natural calamities, such as fires, floods, and earthquakes, hence guaranteeing optimal security against any theft or manipulation. In order to facilitate a smooth transfer to secure storage, we integrate insurance and storage expenses into a consolidated package.
6. What other services does WSVS offer to SMSF trustees for their collectables and personal-use assets?
A: WSVS not only provides secure storage for these assets but also arranges insurance cover underwritten by Lloyd’s of London, offering comprehensive protection at a competitive rate.
