The smsf trust deed is the instrument that establishes the fund, and once it is executed the smsf comes into existence. The smsf trust deed must set out the governing rules your fund must comply with in order to qualify for the smsf tax concessions, and it is essential to prove that you have a genuine smsf.
Apart from the smsf’s objectives, the smsf trust deed will specify how to appoint and remove trustees of the fund. The duties and responsibilities of the smsf trustees will be set out in the deed, and the fund’s initial trustees will execute the document.
All decisions and actions taken by trustees of a self managed super fund must be in accordance with the powers bestowed upon the trustees by the smsf trust deed. A trustee of a smsf is limited by the governing rules of the fund, however there may be a provision within the trust deed to make changed to the deed under certain circumstances. It is for complex issues such as this that your smsf setup should be handled by a professional accountant with experience in this specialised area.
The smsf trust deed will not only determine the framework in which the trustees will act, but it will also specify who can become a member of the fund at a later stage. Some smsf’s are limited by the trust deed to only accept members from a particular family.