A technical specialist has stressed there is no need to file specific paperwork with any regulator if an existing individual SMSF trustee, or director of a corporate trustee, also takes on the responsibility of being the legal personal representative (LPR) upon the death of a fund member.
“We do often get questions [as to whether the trustees need] to appoint [an LPR] twice. If [the individual is] already a director [of the corporate trustee], do we need to notify ASIC (Australian Securities and Investments Commission) that now she is two directors? Or do we need to put paperwork in place to appoint [the person] as an individual trustee?” Accurium senior SMSF educator Anthony Cullen revealed during a practitioner webinar held yesterday.
“The answer to [those questions] is no. You can only be a director once [and] you can only be an individual trustee once.”
However, Cullen pointed out the trustees’ obligation to document any changes of this nature is limited to communication with regulators.
“That’s not to say you’re not going to put paperwork in place to acknowledge [the deceased trustee] has been removed and that [the LPR] is going to be acting in a dual capacity,” he said.
He also took the opportunity to allay any concerns as to whether the LPR can act as the sole individual trustee of an SMSF should the circumstances upon the death of a member lead to this plight.
“[The LPR] may be the only trustee, but they’re not the only member. The [other member of the fund] might be dead, but they still have an interest in the fund,” he noted.
“So although it might look like [the LPR] is a trustee for themselves, you’ve also got to consider they are also acting and still dealing with [the deceased member’s] benefits. So there are more beneficiaries in the fund than just the [LPR].”
