The Corporate Superannuation trustee
Business Succession Update – Spring 2013
Apart from the obvious benefit of having perpetual succession, corporate trustees have another benefit.
Say there is a claim by the occupier of real property held in a super fund. The occupier is electrocuted by faulty wiring and insurance doesn’t cover the claim.
The claimant will pursue the superannuation trustees. The trustees have a right of indemnity out of the trust fund. This will likely mean that the superannuation fund is wiped out entirely. But if the fund is not enough to satisfy the claimant, then the claimant will pursue the trustees personally.
So mum and dad’s assets held outside super, including the family home, are all at risk. Regardless of these risks, most self-managed superannuation funds still have mum and dad trustees. Who is advising these people?