Business Structures & Setup
Corporate Trustee Establishment
Using a corporate trustee — a company established specifically to act as trustee — is widely regarded as the superior approach to trust administration. PHC & Associates establishes corporate trustee companies and explains clearly why the additional setup cost delivers significant long-term benefits in protection, succession, and compliance.
1000+
Structures Set Up
CPA
Certified
ASIC
Registered Agent
What's Included
Everything Covered in This Service
ASIC registration of a new corporate trustee company
Constitution drafted for trustee role purposes
Director appointments and officeholder consents
Formal appointment of company as trustee of the trust
Amendment to trust deed to reflect corporate trustee (if converting from individual)
ABN and TFN registration for the trustee company
ASIC annual compliance setup and management
Explanation of director duties in the trustee context
Key Concepts
What You Need to Know
Understanding the essentials helps you make better decisions and ask the right questions.
Individual Trustee vs Corporate Trustee
An individual trustee holds trust assets in their personal name. A corporate trustee is a company — often named something like 'Smith Family Pty Ltd as trustee for the Smith Family Trust' — that holds assets on behalf of the trust. Most professional trust structures use a corporate trustee.
Why Corporate Trustees Offer Better Protection
An individual trustee can be personally liable for trust debts if the trust assets are insufficient. A corporate trustee limits this exposure to the company — protecting the director's personal assets, provided the company is properly maintained.
Succession on Death or Incapacity
If an individual trustee dies or loses capacity, the trust can become paralysed — requiring court applications to appoint a new trustee. A corporate trustee continues automatically, with directorship changes handled via a simple ASIC update.
A corporate trustee costs approximately $600–$900 to establish and $500–$600 per year in ASIC fees and compliance. Against the asset protection, succession benefits, and administrative simplicity, this cost is widely regarded as excellent value for any trust holding material assets.
Why It Matters
Why This Matters for Your Business
The decisions you make at setup have long-lasting consequences — financially, legally, and operationally.
Individual Trustees Create Personal Liability Exposure
If the trust incurs debts that exceed its assets, an individual trustee can be personally pursued by creditors. A corporate trustee contains that exposure within the company — not the individual.
Succession Events Can Paralyse a Trust
When an individual trustee dies, trust assets are legally frozen until a new trustee is appointed — often requiring expensive court proceedings. A corporate trustee eliminates this risk entirely.
Banks Prefer Corporate Trustees
Most banks and lenders require a corporate trustee before lending to a trust. Individual trustee structures complicate financing and may disqualify a trust from certain lending products.
SMSF Rules Require Corporate Trustees
Self-managed super funds are strongly encouraged — and in some cases required — to have a corporate trustee. The ATO provides a reduced annual supervisory levy for SMSFs with corporate trustees.
Easier to Add or Remove Trustees
Changing trustees in an individual structure requires a formal deed of variation and often stamp duty. A corporate trustee structure simply requires a director change — notified to ASIC within 28 days.