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Should my Spouse and I act as Trustees for our SMSF?

Thursday August 11, 2016

Should my Spouse and I act as Trustees for our SMSF?

Members obligation

All SMSF members must be either Trustees as individuals or directors of the company acting as Trustee.

Benefits of Corporate Trustee

A Corporate Trustee of a single member fund will only require one director.  Corporate Trustees are generally recommended notwithstanding the additional expense in establishment and administrative costs.

The benefits of a Corporate Trustee are usually seen to outweigh the cost disadvantage.

These benefits include:

  • a change of individual Trustees requires change of ownership in all documentation every time a change of Trustee occurs. This is not required with a Corporate Trustee if the change is a change of Director(s);
  • ownership of SMSF assets by an individual Trustee may be intermingled and mistaken for assets owned by the individual in their own right, particularly with shares or real estate;
  • financial records and particularly bank account details may be confused between personal assets and liabilities and trust assets and liabilities.