Self-Managed Super Funds
Self-managed super funds (SMSF’s) are a way of saving for your retirement. The difference between a SMSF and other types of super funds is that the members of a SMSF are usually also the trustees. This means the members of the SMSF run it for their benefit and are responsible for complying with the super and tax laws.
The superannuation law sets out the basic rules for structuring a SMSF. One of these rules requires the SMSF to have a trustee. There are two trustee structure options, either individual trustees or a corporate trustee.
There are many considerations when determining whether a SMSF should opt for individual trustees or have a corporate trustee, such as administrative efficiencies, legal liability, asset protection, succession planning and cost.
As trustees are equally responsible and liable for managing the fund, they need to be comfortable sharing this responsibility with the other fund trustees.
A corporate trustee can have a sole director with full control over the fund, while a fund with individual trustees will need to have at least two individual trustees. For this reason, a corporate trustee is generally chosen for a single member SMSF.
As it is a very important decision to set up a SMSF it is also very important to have the correct structure for your SMSF, please refer to your trusted advisor to seek the appropriate advise.