How to convert your SMSF into a corporate trustee from an individual trustee

There are many reasons why using a corporate trustee is better for your Self Managed Super Fund than individual trustees. The cost of registering a company far outweighs the savings which might be made, the convenience which would be achieved and the personal liability protection which results by using a corporate trustee for an SMSF.

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.

Tax Office

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

 

Article Disclaimer: This information should not be considered personal financial advice as it is intended to provide general advice only. The article has been prepared by Superhelp Australia Pty Ltd without taking into account your personal objectives, financial situations or needs. 
 
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!

 

Sandra - SMSF Advisor

1 + 3 =

Can SMSF Lend Money to a Third Party?

Introduction: Navigating the complexities of Self-Managed Super Fund (SMSF) regulations is crucial for trustees who aim to maximize their fund's potential while remaining within the legal framework set by the Australian Taxation Office (ATO). A common question that...

Can SMSF Lend Money?

The Rules and Opportunities around SMSF lending Self-managed super funds (SMSFs) offer Australians a unique way to control their retirement savings, but with great power comes great responsibility, including understanding the legalities and regulations surrounding...

Can SMSF Borrow Money? Exploring the Possibilities and Limitations

Self-Managed Super Funds (SMSFs) have become a popular choice for Australians looking to take control of their retirement savings. As trustees seek to maximize their fund's potential, a common question arises: Can SMSF borrow money? The answer is yes, but it's wrapped...

What Does SMSF Stand For? A Deep Dive into Self-Managed Super Funds

When it comes to planning for retirement, Australians have a variety of superannuation options available to them. Among these, one option stands out for those who seek more control over their retirement savings: the Self-Managed Super Fund (SMSF). But what exactly...

How much do you need to retire in Australia?

Retiring in Australia can be a dream come true, but it's important to have a clear understanding of how much money you will need to support yourself during your golden years. The amount you need to retire in Australia depends on several factors, including your...

SMSF Director ID

The SMSF (Self-Managed Super Fund) Director ID is a unique identifier that is assigned to individuals who act as directors of SMSFs. This identifier is used to monitor and regulate SMSF trustees and ensure that they are fulfilling their obligations under the...

What types of people have an SMSF?

There are many different types of people who have an SMSF. Some of the most common include: Small business owners: Many small business owners choose to set up an SMSF to help manage and invest their retirement savings. This allows them to have more control over their...

Commercial SMSF Loans – What you need to know

Securing a commercial loan for an SMSF can be complex due to the variety of lenders and options available. Whether you're a first-time borrower or an experienced borrower, it's important to understand the nuances of the loan process when applying for a commercial SMSF...

Is SMSF right for you?

Before deciding to set up an SMSF, it is important to consider whether it is the right choice for you. An SMSF is a type of superannuation fund that is run by its members, who are also the trustees. This means that the members have complete control over the investment...

How to Complete Your SMSF Tax Return

SMSF trustees are responsible for managing their own superannuation funds, which means they are also responsible for ensuring that their SMSF complies with all the relevant laws and regulations. One of the most important compliance requirements for SMSFs is the...

Contact Us

SuperHelp is located in Macquarie Park, NSW however we work with clients all around Australia.

info@superhelp.com.au

1300 736 453

PO Box 1906 Macquarie Centre NSW 2113

M-F: 9am-5pm, S-S: Closed

5 + 14 =