Corporate trustee efficiency
Self Managed Superfunds allow multi generations of family to come and go from the fund. Instances of changes in membership can include:
Parents adding their children to the Fund.
The marriage of an existing member of the Fund to a non member.
Divorce of members within the fund.
Incapacity of a member where their Legal Personal Representative is appointed as a trustee of the Fund in that members stead.
Upon the death of a member where their Legal Personal Representative is appointed until death benefits have been paid.
Whenever a change in membership occurs, a change in trusteeship is also required to occur, if the Fund has individual trustees. As this can happen regularly, raises a time consuming and costly administration problem for the Fund with individual trustees, as the law requires the assets of the Fund to be held in the names of all the trustees of the Fund.
Consequently, a change of, or a new or leaving trustee being appointed requires the Fund to notify all relevant registries and offices via documents and forms to change the names under which the assets are registered.
Furthermore, legal advice may be required at to the correct procedures required to appoint / remove trustees and members, as determined by the trust deed. As a result this burden can be both costly and time consuming.
In contrast, when a member joins a Fund with a corporate trustee, the corporate trustee itself does not change only the directorship of the company changes.
The assets are still held in the same corporate trustee name, no need for change as a result.
Overall a lot less costly and time consuming exercise.