| Description | Softcopy Price* | Hardcopy Price* |
|---|---|---|
| Change of Trustee of an SMSF | $400 | $450 |
SMSF Appointment and Resignation of Trustee
The appointment or resignation of a trustee must be carefully documented to ensure there are no adverse risks or penalties. Previously, many people considered a change of trustee a simple exercise that was done by trustee minutes. However, recent legislative changes have increased the complexity. Note that if a person is being admitted as a member of an SMSF that has individual trustees, that person must be appointed as a trustee at the same time to comply with the member/trustee rules in s 17A of the SISA.
DBA strongly recommends that a change of trustee be documented by way of a deed. There are various conditions that must be satisfied before admitting a trustee and certain documents that must be completed, for example, obtaining relevant consents, ATO notifications and complying with the requirements in the SMSF’s trust deed. DBA’s change of trustee deed also includes a release of the existing trustee(s) from any legal risks after their resignation. The new trustee(s) are only liable for legal issues arising after their date of appointment.
The DBA change of trustee package provides the necessary documents to change the trustee of an SMSF:
- Letter
- Checklist of items to complete
- Trustee minutes
- Memo on issues relating to change of trustee
- Deeds in duplicate
- Relevant ATO form
- Notifications to relevant parties.
Properly prepared change of trustee documentation can be critical in disputes arising upon divorce, ATO audit or death of a trustee/member. This was illustrated in the recent case of Katz v Grossman where the validity of the appointment of two trustees was challenged.
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If you are a new trustee and would like more information on keeping comprehensive minutes, please refer to our Trustee Compliance Kit.
Corporate Trustees of SMSFs
If you are changing trustees, you should consider the advantages of a corporate trustee over individual trustees. Click here to view our FAQ page which outlines these advantages.
Click here here for further information about ordering a new company from DBA.
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