Individual or Corporate Trustee
One of the first things you need to decide should you want to set up your own SMSF is whether to use an individual or a corporate trustee.
- If an individual trustee is used, the members are also the trustees.
- If a corporate trustee is used, the company is a trustee and the members are directors. This means that it is much easier to add or exit members with a corporate trustee. It also means that when a member dies, the assets do not have to be re-registered and you do not need to have to find another trustee. This is because individual trustees must have two members, whereas corporate trustees need only have one Director.
The following visuals demonstrate the difference between the two types…
Clime only uses corporate trustees.
The fact that a company exists in perpetuity provides easier administration and a degree of future-proofing that individual trustees do not. If you do not currently have a corporate trustee, then why not find out about our FREE SMSF Setup or Restructure offer, when you establish a Discrete Share portfolio with Clime.
Having an individual trustee is cumbersome when a member dies, because all the assets have to be re-registered (all assets in your SMSF must be held by the trustees). Clime Super will assist you to switch from an individual to a corporate trustee.