Thursday, 18 April 2013

SMSFs – setting up an SMSF

The Millionaire on Heels loves the idea of an SMSF, but the process to set one up has always seemed a bit daunting.  (In addition, my super balance needs to grow somewhat to make it a cost-effective exercise!) 

So, for today, I thought I’d research practically what needs to be done to set up an SMSF, and in case that’s too difficult, who offers a packed all-in-one service to do it for you.

The post is structured into:
  • Explanation of the “trustee” concept
  • 10 steps to establish an SMSF
  • SMSF “packaged” services

What is a trustee

Before we get into discussing how to set up an SMSF, I think it’s important to understand what a trustee is, as there are numerous references to trustees throughout the post.

Basically, when you set up an SMSF, you must take on the role of either a:
  • Trustee
  • Corporate trustee
A trustee in general is a person or company that holds and invests a fund's assets for the benefit of its members' retirement. 

A corporate trustee is specifically a company that acts as a trustee for a fund.  To be an SMSF corporate trustee, all directors of the company need to be members of the fund, and all members need to be directors of the company.