If your SMSF was setup with individual trustees and a member dies or wants to leave, or if you want to add another member, then you must change the titles of all the SMSF assets and update the trust deed, which can be a time consuming and costly exercise. Whereas with a corporate trustee, when a member leaves or joins the fund it simply requires the appointment or resignation of that member as a director of the trustee company. ASIC must be informed of the change, but the trustee remains the same so there is no need to update the trust deed and there is no need to change any title to the SMSF assets.
This means that it is much easier to add or exit members with a corporate trustee. It also means that when a member dies or leaves, the assets do not have to be re-registered and you do not potentially need to find another trustee. This is because an individual trustee structure requires a minimum of two trustees, whereas corporate trustees need only have one director, as detailed below in “single member funds”. So for example if you had a husband and wife as members of a SMSF and one dies, the remaining member would immediately either have to find another individual to act as trustee of the SMSF or setup a corporate trustee.