Electronic execution of deeds by individuals and companies due to COVID-19 temporary relief measures
Jun 1st, 2020 by dbalawyers
In this episode of the DBA Lawyers Podcast, we discuss electronic execution of deeds, making an effective binding death benefit nomination (‘BDBN’) and the possibility of SMSFs providing rental relief due to COVID-19.
Firstly, we discuss the new temporary relief legislation made by the New South Wales (‘NSW’), Victorian and the Federal governments to allow for deeds to be made electronically. The new legislation allows for deeds to be made by individuals in both NSW and Victoria and for companies to also make deeds electronically subject to certain prescribed criteria being followed. The requirements to make a deed electronically are quite stringent and the procedures set out in the legislation must be adhered to if executing a deed electronically. For a comprehensive look into the new legislation please click here to read more about electronic execution of deeds by individuals and click here for companies.
Secondly, we discuss the making of a legally effective BDBN and some of the pitfalls and situations that members, trustees and advisers may find themselves in. We outline the importance of having quality documentation that allow for a firm foundation and flexibility when making a BDBN. We take the opportunity here to highlight some of the features of our latest SMSF governing rules that went live on 4 May 2020 that allows for, among other things, a BDBN to be made without witnesses.
Finally, we discuss SMSFs giving rental relief due to COVID-19 and the potential non-arms length income (‘NALI’) risks. Daniel Butler will be covering this topic as well as a range of other current hot in DBA Network Pty Ltd’s June SMSF Online Update. To register please click here.
All articles referenced in this show are linked below.
Hosts (in order of appearance): Zacharia Galloway, Lawyer, Daniel Butler, Director