When establishing a self managed super fund, the first decision you’ll need to make is whether you opt for a SMSF corporate trustee or an individual trustee to oversee the running of the SMSF. The key differences between an SMSF corporate trustee and an individual trustee are likely to influence your choice. We hope our analysis below can help you in making this decision.
An individual trustee is a person who has been appointed to operate a self managed super fund. A single member SMSF (a fund created to benefit one person) must have two individual trustees, and at least one of them must be a fund member. In the event that one trustee is an employee of the other, the two trustees must also be relatives. In the case of an SMSF with up to four members, all members must be trustees, and all trustees must be members of the fund. No member can be an employee of another member, unless they’re related to each other.
If you don’t want to have an individual trustee or trustees operating the SMSF, the alternative option is to open the self managed super fund under the name of a corporate entity. For a fund that holds the superannuation of more than one member, a SMSF must have a maximum of four members and all must be directors of the company (a company can be established for the sole purpose of operating the self managed super fund). For single member funds operated by an SMSF corporate trustee, there can be no more than two directors, and the fund member must either be the sole director or one of the two in charge.
iCare Super charges an upfront fee of $880 (including GST) to incorporate your trustee company and $220 for the ASIC annual return.
Yes, you can. But as discussed above, you need to update the trust deed and report the changes to ATO and relative asset registries, etc. If you have to change the trustee structure, or make the decision to do so, we are right here to help you. Please contact iCare Super to discuss in detail.