Question 5 – Have you appointed the trustees for your SMSF?

Topic Progress:

After you have established the SMSF, complete the paperwork to appoint the individual trustees (or directors of the corporate trustee).

 

If you need to establish a corporate trustee, it is best practice to establish a new corporate trustee, rather than use an existing company.  Note a ‘special purpose company’ can be used as the trustee of the fund.  One advantage of using a special purpose company is that it qualifies for a reduced annual review fee (conditions apply).

Not everyone can be a trustee or a director of a company that is the trustee of the fund. There is a requirement for the trustee to be 18 years of age or older and be able to manage their affairs – that is, to have full mental capacity. Refer here for a discussion of trustee eligibility.

Checklist: Appointment of trustee

Complete the following:

Step Description

Step 1

Ensure the new member consents in writing before being appointed as
a trustee or director of the corporate trustee. Retain the consent for 10 years.

Step 2

Appoint them as a trustee (or director of the corporate trustee).

Step 3

They must sign the trustee declaration stating that they understand their
obligations and responsibilities. This must be done within 21 days of
becoming a trustee or director of the corporate trustee. Retain this for 10 years.