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Admit a conditional member

Admission of a Conditional Member to an SMSFPOA

What is conditional membership?

When admitting a member to an SMSF, special procedures and rules apply including that each member must generally be appointed as a trustee or a director of a trustee company. Further, a disqualified person cannot be admitted as a member or trustee or as a director of a trustee company. Generally, a disqualified person is someone who has a conviction involving dishonesty and/or is a bankrupt.

This documentation suite is designed to achieve maximum flexibility and ease the compliance burden and address potential risks associated with admitting members to an SMSF unconditionally. The documents can be used to admit a member on the basis of certain mandatory exit conditions.

Having a DBA Lawyers’ SMSF deed is a pre-requisite of having conditional members. If you do not have a DBA Lawyers’ SMSF deed, click here.

What’s included

  • Covering letter
  • Deed of admission of conditional member
  • Trustee resolutions
  • Member application and consent form
  • Product disclosure statement (PDS) (including binding death benefit nomination form)
  • Trustee declaration forms

Adding a new member – Considerations?

Before you submit an admission of a conditional member form, please make sure you read and review this article (click here) which contains a detailed discussion on the advantages and disadvantages of adding a member to an SMSF as well as other important considerations.

Corporate Trustees

When admitting a new member to an SMSF, DBA Lawyers recommends, as a pre-requisite, you have a corporate trustee since there are many advantages of a corporate trustee over individual trustees, especially when admitting a conditional member. For more information on corporate trustees click here and for information on a change of trustee click here.

For more information and related articles

For more information on the advantages of conditional membership in an SMSF, click on the articles below:

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