Once you have decided to start a Self Managed Super Fund (SMSF) one of the key decisions you need to make is whether to have an individual or a corporate trustee.
In my belief, there is no conclusion to be made. The longer term benefits of a corporate trustee far outweigh the small additional cost. If this small cost is a significant issue for you then the reality is that maybe an SMSF Property Finance is no for you. A SMSF is a long term investment structure so you should be focusing on exactly that and setting the best structure up for the long term from day one.
Cost is the only reason to have an individual trustee over a corporate trustee, but as mentioned above think long term and not about saving a few hundred dollars at the front end.
A sole purpose corporate trustee should be used. This is your long term investment structure, set it up properly and keep it separate from all of your other assets.
A corporate trustee comes with establishment costs, plus an annual ASIC fee and corporate secretarial record keeping requirements, but these are extremely minor costs when you look at the time frame for which your structure is going to run and also ultimately the wealth that the fund is going to hold.
We hope that this summary gives you some guidance on individual and corporate trustee superannuation funds. Should you have any further queries contact our Smsf Loans expert or Visit our site.
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