How to change the Trustee of an SMSF

Key words: Change of Trustee, Trustee, Changing Trustee, SMSF

Question

How can I change the Trustee of an SMSF?

Answer

The "Change of Trustee" document allows you to appoint, remove or change the Trustee/s of a SMSF.

 

If you have the Super Comply service enabled, select the "SMSF Change of Trustee" form under the "Trustee/Members" menu from within the SMSF's Profile. 

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If you do not use Super Comply, select "Change of Trustee" under the "Self Managed Super Fund" heading on the "Create Documents" page. 

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SPECIAL NOTES

  1. The Change of Trustee document is not a Deed of Variation, it is an ancillary document that accompanies the original Trust Deed as proof of the amendment. 
  2. The form can only be used to change the SMSF's Trustee/s. If the concerned person is leaving as a Member as well, then a Member Exit form must be completed. 
  3. This Deed of Change of Trustee takes the approach of retiring or removing all existing Trustees (including those who intend to continue as Trustee) and then "re-appointing" continuing trustees alongside any new Trustees.

 

Points to Consider

Date of Variation

Complete the "Date of Variation" field if there has been a prior variation for this SMSF with the date on which the Deed of Variation/s was signed/executed.

 

Action Type 

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Removal

'Removal' is often used when the member is leaving the Fund (i.e. rolling over to another Fund) and they will not be replaced, or you are changing the type of trustee. It can also be used to "remove" continuing trustees (only to "re-appoint" them again in the following tab) - see above for further information on the logic of our forms. 

Retirement

'Retirement' is used when a member will be paying out their benefits so that, effectively, the pension balance becomes NIL (noting that, under the SIS act, a Member cannot have NIL balance).

Resignation

The Trustee has requested to leave the role out of their own accord. The resigning member would provide a letter of resignation in this case. There will usually be another trustee appointed in their place. 

Dismissal

'Dismissal' is used where the Trustee is forcibly removed based on some form of misbehavior or negligence. 

 

Appointment and Resignation clauses

To find the relevant appointment and resignation clause numbers, you will need to refer to the most current Deed of the SMSF for the clauses which provide the power to appoint or remove/resign trustees.

If required, you can contact NowInfinity's Legal Service Providers if you would like to enter into a formal engagement with a solicitor for legal advice. 

 

Existing and New Trustee Details

Enter in the details for all current trustees (including those who will be continuing as trustee) in the 'Existing Trustee' page, noting the logic of our form as outlined above ('Special Notes'). 

In the next tab, 'New Trustee', enter in the details for all continuing and new trustees. 

 

Members

If you have selected "Yes" to "Is Member?" (i.e. if the trustee also a member) on the Existing and New Trustee tabs, then the details on the 'Members' tab will be prefilled. Remove any duplicated fields for continuing trustees. 

 

Additional Party

Does this fund have extra parties i.e. Principal Employer?

Check there is not a consenting party for any changes that are made to your Deed - this includes an employer sponsor/principal employer, lender etc. If there is a consenting party you would need to provide their details in this tab. 

 

For Super Comply users:

Once completed, and the documents have been signed by the client, you will need to mark the document as signed. Once this has been done, the new Trustee changes will be updated on the Fund's Profile.

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Further Information

When we use the 'Change of Trustee' service for a SMSF, does the Trust Deed or governing rules also get updated?

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