Although a corporate trustee can cost more to setup and maintain, it is usually better than individual trustees. The table below identifies the differences between the two structures:

Individual Trustee Corporate Trustee
Sole Member Funds

A single member fund must have two individual trustees

Sole Member Funds

A single member fund only needs a sole director of the corporate trustee

Additional Administration Costs

Administrative burden in the event of a change of trustees such as a new member or a departing member. This is because all assets must be in the name of the trustees as trustee for the super fund. All titles to assets will need to be transferred to the new trustees.

Administrative Efficiency

Administrative efficiency in the event of changing members. The assets are already held in the corporate trustee name therefore simply requires the directors to be updated when there are changes to the members.

Ceases Upon Death

Added difficulty for succession and estate planning. When a member of a two member fund passes away a replacement eligible trustee will be required which may be difficult to find.

Continuous Succession

Perpetual succession and estate planning made easy as when a member passes away the current structure can simply continue. The trustee does not need to change.

Less Asset Protection

Where a party sues an individual trustee for damages, their personal assets may be exposed

Greater Asset Protection

Companies are subject to limited liability which provides greater protection in the event a trustee suffers any liability