How to convert your SMSF into a corporate trustee from an individual trustee
What is involved in converting from individual trustee to corporate trustee for a SMSF?
There are several issues a trustee will need to look into when attempting this transition.
The Trust Deed
The trust deed is the first port of call with any action you wish to take with your SMSF, so you need to make sure your SMSF’s trust deed permits the use of a corporate trustee. If it doesn’t, you will need to update your deed to allow corporate trustee. If it does, follow the rules in the deed for the resignation of the individual trustees and the appointment of the corporation.
Create and Register a Company
It is always best to use a company specially created to be your SMSF trustee only. You should avoid using an existing company such as your own business or the trustee of your family trust. This is due to problems that can arise when super fund assets become linked with family trust or business assets, and it can become difficult to verify which entity owns which asset.
Once the trustee change has been made, you will need to inform the Australian Tax Office as soon as possible.
Change the asset titles for SMSF investments
Once the trustee change has been made, all the assets owned by the SMSF will require the titles changed to reflect the new corporate trustee. For example, account names on bank accounts, holder name on share registries and brokers and real estate property titles will require an amendment.
- Bank accounts: Before you can make any changes to the account name, most banks will require to see the resignation of the individual trustees and the appointment of the corporation. They may also request company’s certificate of registration.
- Share registries and brokers: Most of these will have similar requirements to your bank, however some brokers insist that your individual trustee account be closed and a new account be opened for the corporation.
- Real Estate: In most states no or a nominal stamp duty will be payable, but you will need to prove to your State Government’s Revenue Office that there has been no change to the beneficial owner of the asset. This task must be completed by a solicitor.
How Superhelp can Help
Superhelp can help you in setting up a corporate trustee for your SMSF.
Please call us for more information on 1300 736 453
The information contained in the article may not be appropriate to your individual needs therefore you should seek personal financial advice before making any financial or investment decisions.
Book Your Free SMSF Consultation
Book your free consultation with me to find out if SMSF is right for you. If you have any other questions, we are happy to help!
Why is SMSF Set up free at SuperHelp?
SuperHelp have been servicing the SMSF market for over 15 years. We pride ourselves in being able to provide an affordable SMSF service without compromising on quality. One of these services are to provide new members with setting up their SMSF for free when they use our award winning service.
Do I need to use a specific bank, broker or provider?
Unlike other SMSF administrators and accountants we do not restrict you to what bank, broker or service provider you use. We are independent and do not take any commissions from other parties so that our clients can invest their super where they please.
How long has SuperHelp been around for?
SuperHelp have been around since 2002 - so over 15 years! While new SMSF administrators have come and gone, we are still around!
How much is your ongoing annual administration fees?
Our first year introductory offer for new SMSF or transferred SMSF are $899 + GST regardless of asset types. Subsequent years are dependent on the number of assets and asset types you have - please use our calculator to estimate your fee. You will find that our fees are very reasonable to the quality provided within the SMSF market.
Do you have an SMSF newsletter that I can sign up to?
Yes! We send out a quarterly SMSF newsletter to all of our clients and anyone interested in SMSF. You can sign up here :
Do you offer any other SMSF services?
Yes we do! You can see a full list of SMSF services on our services page.
SuperHelp is located in Macquarie Park, NSW however we work with clients all around Australia.