• Steve Zoccoli

Reasons for having a corporate trustee

Litigation exposure is a good reason to have a corporate trustee. Individuals acting as trustees are are liable for any actions taken against their self managed super fund as they hold the assets in their own name. Should litigation against the fund exceed the value of assets held in the Fund by the individuals, then the personal assets of the individuals may be at risk.

Companies on the other hand, have limited liability. This generally means that litigation against the Fund is limited to the assets held in the Fund, and secondly the assets held by the corporate trustee only, thereby protecting the individuals from any losses.

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