Individual trustees vs company trustee
A factual overview of the two common SMSF trustee structures — and what changes when members join or leave.
When you establish an SMSF, you choose who will act as trustee: the members themselves as individual trustees, or a company that acts as corporate trustee (with members typically as directors).
With individual trustees, each member is usually also a trustee. Adding or removing members can require deed updates and trustee changes. With a company trustee, the company holds the trustee role; membership changes often involve director/shareholder updates rather than changing the trustee entity itself.
A company trustee can also simplify title to assets (property is often held in the company name as bare trustee or similar structures depending on the transaction). However, a company involves formation costs, ASIC fees and ongoing company administration that sit outside a typical fixed SMSF administration fee.
Neither structure is universally “better”. The right choice depends on your membership plans, asset types, estate planning and cost appetite. Laterpath can administer funds under either structure where platform rules allow, but we do not provide legal advice on which structure you should choose.
Speak with a licensed adviser and, where needed, a lawyer before you decide. This article is general information only.