If you are looking to set up a Self-managed Superannuation Fund, you can start by choosing a short name for it. Though there is no hard and fast rule, time tells why short names work better.
Name chosen for your SMSF
You do not want asset registers and bank accounts displaying incomplete names. In fact, some of the computer systems that banks have categorically deny using long names. And protocols of changing names midway can be tough so why not begin with a short name in the first place. My personal recommendation is to cut down on the noise words like ‘the’ and avoid using words like ‘family’ or ‘executive’. Nothing may suit better than a simple, “Johnson Super Fund”.
Let us come to more serious issues of corporate trustees now. While there is a consensus that corporate trustees should only be used once the funds go past the $1 million mark, I feel that if you have got to use them, do so from the very beginning. You never know they may make the journey from $200,000 to $1 million less time-consuming. Besides, you don’t want to be making changes to the trustee structure later in the day. The documentations is at its most lenient, very legal and even lawyers can get it terribly wrong. Why bring about such a day?
Remember, ‘Trust’ and ‘Trustee’ is two words which cannot be used for the names that your corporate trustees may use. Of course, you do not need to follow my advice to the last tee. It is just that experience is a great teacher and these are a few things I have understood over the years; most of them make setting up your SMSF and subsequent SMSF administration a lot easier.