Humans are Trustees
If you want a human Trustee, all members of the SMSF must also be Trustees. You can't pick and choose between members - it's all or nothing.
A company is Trustee (a Corporate Trustee)
If you have a Corporate Trustee, all of the members must be the Directors of the Company and all of the Directors must be members of the Fund. The Corporate Trustee carries out its role as a Trustee of your superannuation fund just the same as you as individuals do.
If you are the only member of your SMSF, special rules apply.
What if I am the only member of my SMSF?
If you are the only member of your SMSF, you need a company as your Trustee. If not, then you need another unrelated person to act as your second Trustee. You can't be the only member and only Trustee.
The company acting as Trustee abides by special rules. You must:
· Be the sole director of the Trustee Company; or
· Be related to the other director of the Trustee Company (where there are only two directors of that Company); or
· not be an employee of the other director of the Trustee Company (where there are only two directors of that Company).
Therefore, there are limited circumstances for a sole member with a Company as the Trustee to have a second director. This is the case even though that second director is not a member.
Source: law central
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