Does the Successor Director apply to SMSF Trustees?

Absolutely! Particularly to ensure that the Executor is put in place on the SMSF trustee company on death.  Without that the other directors may decline to appoint the Executor and take any nomination or BDBN into their own hands, including declaring it invalid.  

A better solution is the Leading Member SMSF where one member is designated Leading Member.  They have power to appoint and remove trustees and members and ensure that all death benefits go to blood relatives.  That position, which is Chairman of the Board of the SMSF trustees goes to the next leading member on death.  Further, to make things extra secure the shares in the SMSF trustee company which should be owned only by the Leading Member are cancelled and then new shares issued to the next Leading Member.  The share switch provides extra security over the Successor Director solution which at minimum is a must.

Please be advised this is general information only, and is not to be taken as legal advice. If you would like more information, or have a legal query, please contact Abbott & Mourly directly.
Reviewed: 17/01/2024