I heard that if a child is a member of an SMSF, the child does not need to be a trustee. Is this right?

Yes, that's true. As usual, there are a few exceptions to the general rule above. In the case of children, S.17A(3)(c) allows the parent or guardian of the child member to be a trustee (or director of the corporate trustee) of the fund in place of the member (even if the parent or guardian is already a trustee/director of the corporate trustee).

Unfortunately, in order to maintain our low prices and high services levels, we generally don't prepare any funds which go outside the general rules set out above. That is, we usually only set up SMSFs where all of the members are trustees (or directors of the corporate trustee), and all of the trustees (or directors of the corporate trustee) are members (or where a fund has only one member and two individual trustees).

Nevertheless, if so requested, we may consider amending our SMSF documents (e.g., to allow for a parent or guardian of a child to be a trustee/director of the corporate trustee in the child's place). Please contact us before placing your order if you have this situation.