Becoming an SMSF Trustee

Written by Hein Preller , Posted in SMSF set-up

It is an ATO requirement to have a minimum of 2 Individual Trustees or a Corporate Trustee. Note the second Trustee does not need to be a Member. However, the second Trustee can be a Member if you so decide. A Trustee should have a Tax File Number and be over 18.

In a Corporate Trustee structure, all Members must be Directors of the Corporate Trustee.

The term “settlor” refers to the person who establishes a Trust. In an SMSF, the settlor is the Trustee.


Clink here for more information on the ATO requirement

Hein Preller

Hein is a Director at Superannuation Warehouse, specializing in setting up new SMSF's. Hein's company performs all the annual administration tasks consisting of preparing financial statements, lodging a tax return and arranging the audit.

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  • Hein Preller

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    Steve,

    A SMSF is a type of trust and from a legal perspective, does not have legal persona. So it is represented by the trustees. If there’s just one Trustee and that trustee dies, the Trust (SMSF) disappears. So 2 Trustees are required, or you can set up a corporate trustee to ensure the SMSF stays “alive”.

    The main disadvantage is the cost of a corporate Trustee. We charge $950 for set-up and the annual fee to ASIC is $42. More on corporate Trustee pro and cons here:
    http://www.superannuationwarehouse.com.au/free-smsf-setup/smsf-corporate-trustee/

    This is a great question and I added it to my blog. Trust this helps.

    Regards Hein Preller Director – Superannuation Warehouse

    Reply

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