Personal vs corporate trustee

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



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