Selecting Trustees for a SMSF

Setting up a Self-Managed Super Fund (SMSF) requires a number of decisions to be made. For a start the structure of the Fund needs to be clarified as well as how the funds will be invested so it’s appropriate that we start by looking at something as fundamental as selecting the SMSF Trustee.

The SMSF Trustee obligations could be described as simply carrying out the wishes of the Trust but in reality there is more to it than that. For example the SMSF Trustee is charged with complying with the provisions of the Superannuation Industry (Supervision) Act 1993 (SISA) and its Regulations, the SMSF trust deed rules and provisions as well as any other rules imposed, for example under Taxation law and Trust law.

Keeping that in mind, there are two types of Trustees to choose between, Individual and Corporate.

A lot of clients ask the question “What is a Corporate Trustee?”  We recommend you speak to a SMSF professional to have that answered before deciding on which option you want. You may have many more questions about SMSF trustee eligibility that are best answered by a SMSF adviser as there are a number of important factors to consider.

Some of the Member and trustee requirements are shown below:

Setting up a Self-Managed Super Fund (SMSF) requires a number of decisions to be made. For a start the structure of the Fund needs to be clarified as well as how the funds will be invested so it’s appropriate that we start by looking at something as fundamental as selecting the SMSF Trustee.

The SMSF Trustee obligations could be described as simply carrying out the wishes of the Trust but in reality there is more to it than that. For example the SMSF Trustee is charged with complying with the provisions of the Superannuation Industry (Supervision) Act 1993 (SISA) and its Regulations, the SMSF trust deed rules and provisions as well as any other rules imposed, for example under Taxation law and Trust law.

Keeping that in mind, there are two types of Trustees to choose between, Individual and Corporate.

A lot of clients ask the question “What is a Corporate Trustee?”  We recommend you speak to a SMSF professional to have that answered before deciding on which option you want. You may have many more questions about SMSF trustee eligibility that are best answered by a SMSF adviser as there are a number of important factors to consider.

Some of the Member and trustee requirements are shown below:

trustee requirements

A Single-member SMSF is best set up using a Corporate Trustee. As we have seen, the Corporate entity provides far more flexibility and safety for the fund.

Cost trustees

Cost

Ownership of fund assets

The title of fund assets must always be in the name of the current trustees ‘as trustees for’ the fund.

(E.g John Smith as Trustee for ABC Super Fund OR ABC Pty Ltd as Trustee for ABC Super Fund)

Ownership of fund assets

Separation of assets

The fund’s assets must be kept separate from assets any of the members hold personally. This is where the

Corporate Trustee entity provides additional safety for the Fund.

Separation of assets

 Penalties

5

Succession

6

 

 

 

 

 

Obtaining Finance should also be a consideration even at this early stage. It would be unfortunate to go to all the trouble and cost of setting up a SMSF structure only to find out later that finance isn’t available. We recommend speaking to a Mortgage Professional early on in the process in conjunction with your Financial Planner.

Why not call us today to get started with your own Self-Managed Super Fund?

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