Do I need to do that?

For many people, the trust deed is little more than a bit of legal gobbledygook that you need to run your own super fund. In fact, it's much more than that. Your trust deed sets out how your fund must be run - what you and any other trustees can and can't do. You're legally bound to act in accordance with the trust deed, so it needs to be structured to give you the flexibility you want.

I thought the Government set the rules on what I can do.

The Government sets rules for all super funds through the Superannuation Industry (Supervision) Act and regulations. Trustees are also bound by trust law and the Corporations Act. Your trust deed should reflect these laws but the Act's rules are deemed to be part of every regulated self-managed fund's trust deed anyway.

Phil La Greca, the technical services director with Multiport, says most trust deeds have a "deeming" provision that allows for any legislative amendments to be automatically included in the trust deed. Changes such as the new limits on contributions that came in last year should be covered automatically.

But this provision typically doesn't cover changes that are optional or circumstances where your trust deed may be stricter than the official rules.

For example, La Greca says amendments passed last year that allowed self-managed super funds to borrow under certain conditions may not be reflected in your trust deed. This could prevent you from borrowing within the fund, even though the law now allows it.

How can I tell whether it needs updating?

La Greca says the trust deed is a legal document, so you should get expert advice on what needs to be done. You should ask your fund adviser whether the trust deed needs reviewing. If your trust deed hasn't been updated since 2003, it's likely to have significant shortfalls. Even if it has been updated more recently, it may need a further update depending on your circumstances.

La Greca says issues that may need reviewing include who can be a member of the fund, whether contributions can be accepted from any source, whether it allows for binding nominations on who receives death benefits and whether the fund caters for the full range of retirement benefits now available.

"One of the first questions on the 2008 self-managed fund return is 'Does the trust deed allow for the acceptance of co-contributions?' " he says. "Some trust deeds written before the introduction of the co-contribution may not have envisaged the Government contributing to the fund and may say that only members or their employers can contribute."

La Greca says your need to make changes may also depend on whether your trust deed is permissive or prescriptive. Permissive trust deeds tend to be shorter and less detailed. He says they'll usually refer to actions allowed under the law without going into detail. The assumption is that you, or your adviser, understand the law.

Prescriptive trust deeds, he says, spell out things in detail. They indicate which specific activities are permitted, so that trustees don't have to worry as much about checking the legal requirements.

La Greca says prescriptive trust deeds provide more certainty for trustees but in times of excessive legislative change more amendments to the trust deed may be required.

How do I update the trust deed? La Greca says the process is usually spelt out in the trust deed itself. Because there is no standard trust deed, the processes will vary. He says you can usually choose between making specific amendments - such as removing a particular clause and replacing it with something else - or adopting a new, updated trust deed. If your trust deed is older, the latter may be simpler as it will remove the potential for lots of convoluted cross references. Updated trust deeds can be bought off the shelf. However, La Greca says, care should still be taken as the process, if not undertaken properly, can trigger a resettlement. In plain English, that means you could be deemed to have closed one trust and started another - which could trigger capital gains tax and stamp duty.