Change of SMSF Trustee (death of a trustee)
Is the Change SMSF Trustee package suitable for when the SMSF has a member who is under 18 years old?
The law allows an SMSF to have a member who is under 18 years old. Specifically, where there is a member under 18 years old who does not have a legal personal representative:
- a parent or guardian of the member needs to be a trustee of the fund in place of the member; or
- if there is a corporate trustee, a parent or guardian of the member needs to be a director of the corporate trustee in place of the member.
Is the Change SMSF Trustee (death of a trustee) package suitable for when a director of the corporate trustee has passed away?
If the SMSF has a corporate trustee and the person who has died was a director of the corporate trustee, then you don't need to change the trustee for this reason. However, you can still use Cleardocs to change the SMSF's trustee anyway:
- using the Change SMSF Trustee (Cleardocs deed) document package if the SMSF already has an underlying current Cleardocs deed; or
- using the Change SMSF Trustee (non-Cleardocs deed) document package if the SMSF does not have an underlying current Cleardocs deed.
Should I use the Change SMSF Trustee package when a fund member turns 18?
A person under 18 years old can be a member of an SMSF, but not a trustee. Superannuation law allows a parent or guardian of a member who is under 18 years old to be that member's representative as trustee. When the member turns 18 years old, that member must be:
- if the fund has individual trustees, appointed as a trustee and his or her parent or guardian must retire; or
- if the fund has a company as trustee, appointed as a director of that company trustee.
You can use a Cleardocs Change SMSF Trustee package to retire a parent or guardian representative trustee and appoint the now 18 year old member as a trustee.
You do not need to use the Cleardocs Change SMSF Trustee package to appoint the 18 year old member as a director of the corporate trustee. The appointment as director can occur in accordance with that company's Constitution. However, the 18 year old member must:
- sign a form consenting to his or her appointment as a director of the company; and
- complete the ATO trustee declaration form.
The 18 year old member should also read the Australian Taxation Office's self-managed super funds — key messages for trustees (NAT 71128)".
Once the new director has been appointed, an existing director must complete an ASIC Form 484 to notify ASIC of the appointment of the new director.
In all cases, once the changes have taken place to the fund's trustees, the trustees must complete and sign the ATO change of details form for superannuation fund entities. This form is provided with the Cleardocs Change SMSF Trustee packages.
 Section 17A(3)(c) of the Superannuation Industry (Supervision) Act 1993.