We would like to replace the personal trustees of our SMSF with a corporate trustee. However we are told that all the SF assets would have to reflect this change in ownership. Managed funds and shares would have to be sold/redeemed and repurchased and term deposits terminated early. Is this correct ?
If so, this would result in considerable costs from fees and penalties. Are there any measures available to mitigate the situation ? Is there allowance for a delay in the change of the ownership name of the assets when the trustee is changed?
Thank you for your assistance,
CL.
A: Hi there,
You will need to;
- Change the trustee and the assets at the same time (and show you’ve done all you can to make second step occur ASAP after company becomes trustee)
- Most managed funds, share brokers & registries will allow you to change trustee without buying/selling – they all have similar but slightly different requirements so I would check with each of them
- Some brokers & registries charge fees
- Real estate is the hardest and most expensive as you need to get a lawyer involved and then get title changed
Cheers,
TN