One of my most popular long term blogs is Why Self Managed Super Funds Should Have A Corporate Trustee and thankfully most new SMSFs are finally being set up with a corporate trustee from the outset. But that leaves many existing SMSFs with Individual Trustees and I get numerous questions about the cost of the transfer process. If you are considering an SMSF the I would encourage you to read through that article and feel free to pass it on to your friends, family or advisors.
Watch ATO guidance here – SMSF trustees – individual or corporate
The basic costs depend on your current legal document deed provider or the new provider chosen to implement the changes. But here is a guideline
- Cost of Sole Purpose Corporate Trustee would usually be around $660-$880 of which $488 is the ASIC registration fee
- Trust Deed Amendment to Retire the current Individual trustees and Appoint the new Corporate Trustee is about $200-$375
- Then all assets need to be moved in to new Accounts in the name of the new Trustee company.
- Shares/ETFs/Hybrids usually cost $55 per share (you can bargain a discount with your broker) but a new Account application is also required
- Wrap Platforms – depends on the provider but usually you will have to set up a new Account and they will in-specie transfer them across.
- Managed funds may have stamp duty costs depending on the state. A new application for is required before the transfer
- Bank account providers just usually require a request in writing, copy of the Company Certificate of Registration and copy of the Trust Deed Amendment
- Property will depend on the State but some have an exemption or concessional stamp duty and only a small fee for changing the trustee on the title. See more detail here Stamp Duty Requirements on Change of SMSF Trustees as of 01 Jan 2015 – I will try to get this update shortly.
- Bullion/Coins – just usually require a request in writing, copy of the Company Certificate of Registration and copy of the Trust Deed Amendment
Ongoing Costs
Costs should not be a deterrent as a sole Purpose Trustee company ASIC review fee is only $53 per year and you can lock that in and get a discount for up to 10 years. See here for more detail on that discount.
Don’t feel like trying to do all this yourself? How much do we charge for guiding you through the process
If you require assistance and advice on making the changes our advice fee is approximately $3,300 as it is a time consuming process. This includes:
- Review of your current circumstances and portfolio to see what needs to be done
- Advice on the change of trustee and process
- Preparation of all documentation for signature
- Assistance with implementation of asset transfers
Finally if you are considering trying to save some costs by using the same company as your Business or Family Discretionary Trust then I would recommend you read this article first: Trading Company as SMSF Trustee or Sole Purpose SMSF Trustee Company?
Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why not contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.
Liam Shorte B.Bus SSA™ AFP
Financial Planner & SMSF Specialist Advisor™
Tel: 02 98941844, Mobile: 0413 936 299
PO Box 6002 BHBC, Baulkham Hills NSW 2153
5/15 Terminus St. Castle Hill NSW 2154
Corporate Authorised Representative of Magnitude Group Pty Ltd ABN 54 086 266 202, AFSL 221557
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
