Summary: When an SMSF has two trustees and one dies, an extra person can be appointed to act as an individual trustee or a company can be formed to take over as trustee. These changes can be made earlier to avoid extra administration at the time of death. The SMSF’s trust deed should set out the documentation needed to appoint an extra trustee.
Key take-out: There is no legal requirement that SMSFs change the name investments are held in when there is a change of trustee. Instead of changing all investments, trustees may only change names on key items such as bank accounts.