Bob and Betty are individual trustees of their SMSF. During the year they divorce and Betty resigns as trustee and rolls her money to a new fund.
Bob is now the only member so he either needs to add another person as a trustee or switch to a corporate trustee. He can be the sole director of the corporate trustee but he cannot have only one individual trustee.
Once the trustee changes have been made, Bob may have to notify the relevant investment registries such as share registries, land titles offices and other investment bodies as each individual trustee’s name needs to be recorded ‘as trustees for’ the fund.
In contrast, if the fund had a corporate trustee, no changes would be needed to investments as the assets are in the name of the corporate trustee ‘as trustee for’ the fund. He would have just notified ASIC of the changes to directors and he could continue as sole director.