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SMSF Trustees – Corporate vs Individual?

SMSF Trustees – Corporate vs Individual?

In Australia, around 77% of SMSF’s currently have individual trustees.

However, the case for using a corporate trustee is growing stronger and we are now seeing an annual shift away from individual trustees.

In this issue, we investigate some of the reasons why this is the case:

Company Individual
Asset Protection Companies have limited liability giving greater protection against laws suits If individual trustees suffer a liability, their personal assets are also exposed
Succession Planning Companies provide much more certain control on death or incapacity of a member or company director If an individual trustee dies, the SMSF must change the title on all assets held
Membership Changes The title to all assets remains in the Company’s name thus company trustees see considerably less paperwork and cost upon cessation of membership or changes to the directorship of the trustee company If a member joins or leaves a fund, that person must become, or cease to be, an individual Trustee

As trust assets must be held in all Trustees names, the title to all assets must be transferred to the new Trustee or Trustees

Estate Planning Companies offers greater flexibility for estate planning as the trustee does not change as a result of the death of a member A member’s death gives rise to considerable administrative work and costs
Sole Member Funds SMSF’s can have one individual as both the sole member and sole director Sole member SMSF’s must still have two individual Trustees

Our experienced Accounting team is here to guide your through every aspect of SMSF’s – just call us on 07 3883 8999

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