When you are making aSelf Managed Superannuation Fund, one of the first things to consider is if the trustee should be company or a group of individuals.
Whatever you choose, it can not be wrong.
What is a corporate trustee?
When you have a company as a Trustee, then you have a Corporate Trustee.
A corporate trustee’s function is to act in the interests of investor by acting like an independent supervisor and caretaker of possessions.
Issuers of securities to parts of the general population are bound by a trust deed and need a trustee by law. The trust deed sets out the ‘guidelines’ for the investment.
The trustee’s part incorporates to…
– Hold assets in trust particular from the scheme manager;
– Act for the collective interests of investors;
– Guarantee the company offering the venture obeys the trust deed.
A corporate trustee can have a specific executive which is ideal if you wish to build a fund with one and only one individual included.
Depending on if you have distinctive trustees as an alternate, you should have a second individual share the trustee obligations as it is not plausible to have a specific single trustee. While that second individual does not need to be a member, they do need to be actively included in the trustee determinations made in relation to fund.
Choosing the right trustee
When you decide on a trustee you might wish to consider their…
Reputation: a trustee who has a great track record and tenability will provide your venture with an assurance of quality.
Network: a trustee who can draw on more extensive resources is likely to have the capacity to address all the requirements of your project.
Approach: a trustee ought to be consultative, adaptable and innovative and its approach should suit the method you do business.
Experience: a trustee might as well have a big range of experience as this will enable it to identify and award creative results for your venture, and to help keep away from project.
Pragmatism: a trustee ought to have the experience and pragmatism to balance legal duties commercial realism.
Advantages of using a Corporate Trustee
– If there’s one and only one Trustee, use this structure as you do not have to include another additional individual as Trustee;
– When Trustees change, you would be able to change Directors in the Company only and do not need to change the Trust Deed for the Trustees;
Disadvantages of using a Corporate Trustee
– Higher set-up expenses;
– There is a twelve-month expense payable( at Superannuation Warehouse) for maintenance of this entity which is payable to ASIC;
– No extraneous security offered to the SMSF assets due to this additional legitimate structure.
Self Managed Super Funds 