Question 1

How long does this document take to assemble?

Accepted Answer

Depending on the complexity of the data, this document should take approximately 15-30 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

Question 2

How does a Leading Member SMSF differ from a standard SMSF?

Accepted Answer

The Leading Member SMSF is based on the LYD SMSF with the added benefit of limiting Trustees and Members to lineal descendants, via the use of a Leading Member. A Leading Member controls the Fund and succession planning for the Leading Member is catered for in the LYD Leading Member SMSF.

Question 3

Can my SMSF be upgraded to a Leading Member SMSF?

Accepted Answer

Yes, provided your existing SMSF Trust Deed allows for the substitution of governing rules. There are also no issues in relation to resettlement. You will need to plan for who is the Leading Member plus succession in the Leading Membership role. However, if you would like legal advice to that effect, contact our legal team: tanamourlis@tgalegal.com.au.

Question 4

What are the benefits of the LYD Leading Member Special Purpose SMSF Corporate Trustee?

Accepted Answer

► Flexible and matches the requirements of the Corporations Act 2001 for a special purpose corporate trustee.
► The Leading Member of the Fund is automatically appointed as chair.
► One Director – one vote rule with Leading Member veto power.
► The Leading Member can appoint or remove Directors.
► Only ordinary class of shares offered.
► On death of a member, the Board of Directors must appoint the deceased member’s LPR as a Director or lose its trusteeship.
► On death, only the deceased member’s LPR as a Director has a vote in relation to the payment of the deceased member’s death benefits.
► All of the shares of the company are held by the Leading Member. On the death of the Leading Member, these shares are cancelled and new shares issued to the incoming Leading Member.

Question 5

Is this document a legal document?

Accepted Answer

All master documents have been signed off by LY Legal lawyers. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.

Question 6

Is the document easy to read?

Accepted Answer

All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.

Question 7

What lawyers sign off on LYD documents?

Accepted Answer

All LYD documents are prepared and signed off by LY Legal.

Question 8

Are the LYD documents reviewed regularly?

Accepted Answer

All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.

Leading Member Kit – Upgrade of SMSF Deed and Corporate Trustee to Leading Member control