This is a common issue in estate planning involving SMSFs. Where a single member fund is required by law to have at least two individual trustees (if no corporate trustee is appointed). The fund’s trustee may become incapacitated with the second trustee acting under the authority of an enduring power of attorney. The effect is that the fund only has ‘one trustee decision-maker’ without any checks or balance from the incapacitated trustee. Notwithstanding, it appears that the fund will remain compliant.
Check out the article on SMSFAdvisor for details. The article is here