We often get asked why there are no trustee consent minutes or other minutes in the LightYear Docs SMSF and discretionary trust, plus our leading member suite packages. First and most importantly, the deed is the core document establishing the trust (which includes a SMSF) so there needs to be a trustee. The only place that a trustee can consent to being the first or initial trustee is in the deed as a minute is too late. You cannot have a trustee consent coming after the trust has been set up as the trustee is a key component of the trust. This is the same as the appointor which is why we have everything in the deed of establishment and all the parties to the deed signing. Once the deed is executed then we can get down to business but it is so vital to put as much into the deed as is possible.
This leads us onto member application forms in our SMSF. We don't need them and don't want them for the initial members, as like the trustee they are party to the deed itself. It is stronger, more secure and compliant to have the initial members parties to the deed rather than a separate document that may or may not get lost. For future members there are application forms as the deed has already been settled.
Here is the recitals for the LightYear Docs SMSF deed of establishment and cover, within the sanctity and legalities of the deed, all that you would normally find in Trustee minutes:
- The Trustee establishes a Trust and Superannuation Fund known as Family Super Fund (“the Fund”) on execution of this Deed, in accordance with this Deed as a Family Self- Managed Superannuation Fund.
- The Trustee hereby executes this deed and is appointed as the first Trustee.
- The Trustee intends that the Fund should be a complying Self-Managed Superannuation Fund (“complying SMSF”) for the purposes of the Superannuation Industry Supervision Act 1993 (“SIS Act”), the Income Tax Assessment Act 1997 (“Tax Act”) and other Superannuation Laws.
- By execution of this Deed the Trustee signifies its consent to be appointed as the initial Trustee of the Fund as well as the initial members of the Fund. The Trustees acknowledge that they have read the Rules of the Fund, the Product Disclosure Statement and agree to be bound by them.
- By execution of this Deed the Initial Members are taken to have applied for membership of the Fund through this Deed and hereby signify their consent to be appointed as Members. The Initial Members acknowledge that they have read the Rules of the Fund, the Product Disclosure Statement and agree to be bound by them.
- The purpose of the Fund is to provide superannuation benefits to Members and in the event of their death, for their Dependants and to act for any other purposes as permitted from time to time under the SIS Act 1993, the SIS Regulations 1994 or otherwise allowed by the Regulator.
- Establishment of the Fund: The Trustee establishes the Fund as a trust to be administered in accordance with this Deed with the Trustee and Initial Members to be appointed as the first Trustee and first Members.
- Name of the Fund: The Fund will be known as the Family Super Fund. Such name may be changed by the Trustee according to the Rules of the Fund.
- Initial Trustee: The Trustee confirms that it will act as the initial Trustee of the Fund in accordance with this Deed.
- Rules of the fund: The Rules of the Fund are the Rules attached to this Deed including any schedules, member sub-funds and may include any further amendments, changes or additions to the Rules made in accordance with the provisions of the Deed and the Rules.
- Operations of the Fund: The Trustee hereby agrees to accept the initial and any further applications for Membership of the Fund. In addition, the Trustee is to ensure all Members meet the Trustee requirements for membership of a SMSF. The Trustee further agrees to receive Contributions, Rollovers and Transfers on behalf of Members, distributions and any other amounts paid to it and will invest those amounts to provide Superannuation Benefits for past, current and future Members according to the Rules of the Fund.
- Successor Acts: A reference to an Act includes a reference to any successor Act to that Act.