How Many Trustees Does a SMSF Need?
An SMSF trustee is a fund member who shares control and management of the investment and financial decisions while also complying with the strict rules, regulations, and laws. When an SMSF is opened, the existing members will have the option to choose between appointing an individual or company trustee. Based on the legislative requirements, an SMSF must have at least two individual trustees or a company that is set up as a legal trustee and allows the existing trustee to have complete control over the fund without having to bring in an additional trustee. However, company trustees can inflict higher fees on the existing members.
A self-managed super fund allows its members to be in control of their investment decisions and retirement planning by making investment purchases that will result in stable income to benefit the trustee’s retirement savings fund. The SMSF retirement savings can be accessed when the trustees reach the retirement age determined by the year they were born, or begin to legally transition into retirement.
It is important to keep in mind that SMSF can be difficult to set up and maintain on your own. Working with experienced lending specialists, mortgage brokers, and financial advisors can help a trustee ensure the processes are completed properly. If the processes are not completed properly a trustee can find themselves thrown into hefty financial and legal issues.
To learn more about self-managed super funds, reach out to the Mortgage House professional lending specialists! We are experienced, knowledgeable, and prepared to help you work through creating an SMSF and successfully financially preparing for your desired retirement plans.