It is better to have a corporate trustee for a self-managed super fund (SMSF) rather than an individual, according to Clime Super general manager Darren Katz.
This is because an individual trustee will eventually die, creating the need to re-register all the fund’s assets and office bearers, which is a costly and time consuming exercise, according to Clime.
If the fund has a corporate trustee, those assets are transferred seamlessly to the remaining members of a fund when one member dies, Clime stated.
“It is very short-sighted and unwise to have an individual act as your SMSF trustee,” Katz said.
For this reason Clime Super insists on a corporate trustee rather than an individual trustee for every SMSF it establishes, he said.
