How Does a Child Under 18 Years of Age Become a SMSF Member, if They Need to be a Trustee?
A SMSF may establish a member’s account for a child under 18 years of age, however the SMSF rules state that all members must be trustees or directors of a corporate trustee. Children under the age of 18 years cannot be trustees or directors. How is this managed?
The SIS Act (Sec. 17A) allows the child to become a member of the fund and for one of the parents to act as their legal personal representative in relation to trusteeship, signing all fund documents on their behalf. However, as soon as they turn 18 years of age, they must be appointed as a Trustee (individual) or be appointed a director of the corporate trustee, whichever is applicable.
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