Considering setting up an SMSF? Before you get too far down the track you need to confirm that you are actually eligible to act as a trustee of an SMSF, a self-managed super fund
An SMSF, a self-managed super fund, is a trust that is established through a trust deed. This trust as any other requires a trustee or trustees to be appointed.
Who are the trustees of an SMSF? All fund members of an SMSF must be individual trustees or a director of the corporate trustee, generally.
However, not everyone is eligible to be an individual trustee or a director of the corporate trustee. You must meet the following criteria to be eligible to be a trustee:
· 18 years old or older
· You must not be a disqualified person, see belowfor further information
· You have legal capacity such as mental capacity
If you are under 18 years old, you can be a fund member however you must appoint a parent or a legal personal representative as an individual trustee or a director of the corporate trustee on your behalf.
Let’s determine whether you are a disqualified person, if you answer yes to any of the below questions you are a disqualified person and therefore you cannot be an individual trustee or a director of the corporate trustee:
· Have you ever been convicted of a dishonest offence, such as fraud, theft or illegal activities, in Australia or overseas? Please note convictions may have occurred at any time, may not be recorded, may have occurred when you were underage.
· Have you been banned or disqualified by the ATO, ASIC or APRA?
· Have you ever been issued with a civil penalty order?
· Are you currently bankrupt or insolvent under administration?
It must be noted that if you have not met your lodgement deadlines for tax returns or have unpaid tax debt your SMSF registration may not be approved.
Whether you are an individual trustee or a director of the corporate trustee you must consent to the appointment in writing and execute an ATO Trustee Declaration, within 21 days of appointment.
