Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, October 21, 2013

Article on Succession Planning

Succession planningPiper Alderman recently published an article entitled, Succession Planning For SMSFs and the Role of a Corporate Trustee, Wills Watch (October 2013).  Provided below is an excerpt of the introduction:

Self Managed Superannuation Funds  (SMSFs) are increasingly popular and often  hold significant wealth. In some instances  the assets held in member’s SMSFs are  more valuable than their own homes. The need for proper succession planning  for when a member of a SMSF dies is  therefore vitally important.

There are a number of factors to consider  when dealing with succession planning of  a SMSF.

Choice of Trustee:

The Superannuation  (Industry Supervision) Act 1993 (SIS Act)  governs who can be a trustee of a SMSF  and whom can be appointed. Subject to  the provisions of the SIS Act a SMSF can  have individual trustees or a corporate  trustee.

Individual Trustee:

Where individual trustees are appointed, individuals must  also be a member of the fund. If the SMSF  is a single member fund however, as the  member is not “perpetual” there must be  two individual trustees at all times, one  being the member of the fund.

Corporate Trustee:

One effective tool to assist with the succession planning of a SMSF is to appoint a corporate trustee rather than individual trustees. In most cases a corporate trustee can provide greater flexibility for succession planning.


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