Selecting a SMSF Trustee 

Will your new SMSF Trustee be a company?  Or will you and someone else be the SMSF Trustees?  These are questions that everyone that wants to setup a Self Managed Super fund must answer.

Below we have outlined some key items t0 consider when selecting a SMSF Trustee.

 Reasons to select a company Trustee

It gives the fund perpetuity in the scenario where both individual Trustees pass away together.  The fund can continue by having another Director of the Trustee company appointed.  The company gives another layer of asset protection to the Super fund’s assets.  An individual Trustee setup could be exposing the Super fund’s assets to additional unnecessary Creditor risk.

 Interested in purchasing property in your Super Fund?

Australians love to invest in residential and commercial property and Super funds do too.  If you are considering purchasing a property and borrowing to settle the purchase in your SMSF, you need a company Trustee.  The reason for this is that banks generally won’t lend to a SMSF with individual Trustees.

Reasons to select individual Trustees

Setting up a company Trustee will incur additional costs.  There is a one off company setup cost, an annual ASIC fee and yearly compliance costs.  If these costs are of concern to you then an individual Trustee may be the right choice.

Please note, if you choose to appoint individual Trustees to control your Super fund the choice must select two people.  The reason for this is that a Super fund must have either a company Trustee controlled by at least one Director, or at least two individual Trustees.

Selecting a Trustee for your new Super fund is a decision that requires careful consideration.  Selecting the wrong Trustee could expose the Super fund’s assets to Creditors or it could even preclude you from purchasing certain assets.  If you are unsure about which option to select please speak to the team at Complete Accounting.