Guide to self-managed superannuation funds

Step 5: Create your trust and trust deed

A trust is an arrangement where a person or company (the trustee) holds assets (trust property) in trust for the benefit of others (the beneficiaries). A super fund is a special type of trust, set up and maintained for the sole purpose of providing retirement benefits to its members (the beneficiaries).

To create a trust, you need to have the following:

• trustees
• property (assets) (commonly an initial nominal consideration takes place to give legal effect to the trust - for example, $10 held in trust)
• identifiable beneficiaries
• the intention to create a trust.

A trust deed is a legal document that sets out the rules for establishing and operating your fund - things like the fund's objectives, who can be a member and how benefits are paid. The trust deed and super laws together form the fund's 'governing rules'.

A trust deed is a legal document, so you need to have it prepared by someone qualified to do so.

If your fund has individual trustees, the trust deed needs to state that the fund's sole purpose is to pay retirement benefits.

All trustees need to understand, sign and date the trust deed and ensure it is properly executed according to state or territory laws.

	For more information, refer to Setting up a self-managed super fund (NAT 71923).
	Self-managed super funds - home

Sections within Setting up an SMSF

• What it means to be a trustee
• How your SMSF is regulated
• Laws, rules and consequences
• Step 1: Appoint an SMSF professional to help you set up and run your fund
• Step 2: Work out the structure of your fund
• Step 3: Make sure you (and the other members) are eligible to be a trustee
• Step 4: Check the residency of your fund
• Step 5: Create your trust and trust deed
• Step 6: Appoint your trustees
• Step 7: Record each member's tax file number
• Step 8: Open a bank account for your fund
• Step 9: Register with the ATO
• Step 10: Prepare an investment strategy