You may be aware that toward the end of 2021, in a private ruling, the ATO confirmed the tax payable in respect of a gift of superannuation to a member’s estate where that super is to be held in a testamentary discretionary trust.
death benefits
Superannuation member benefit vs death benefit
When there is no tax dependent to receive a member’s superannuation death benefits tax-free, a potential tax saving strategy is to withdraw their entire super benefits prior to their death. The money then becomes their ‘personal asset’ which can be distributed tax-free to any non-tax-dependants such as the member’s independent adult children.
SMSFs and binding death benefit nominations – where is your limit?
The superannuation environment may offer great tax efficiency in passing a member’s death benefits to their dependents, however there is a rider – the member will not have full control over how the benefits will be used by the beneficiary.
SMSF death benefits – the case for flexibility
We often want certainty. In a world where there is increasing conflict between family members after a parent dies, and a greater propensity for children to challenge a deceased person’s estate, anything that promotes greater certainty with regard to estate planning is usually seen as a good thing.
Reversionary pensions that don’t revert
What happens where, at the time of death of the pensioner, a reversionary pension fails to revert because the nominated reversionary pensioner (an SIS Act dependant) is not eligible to receive income stream death benefits, for example where the nominated reversionary pensioner is an adult child of the deceased member.
Asset Rich Cash Poor: Meeting cash obligations with all eggs in one basket
What to do when the fund owns a property and one of the members dies. Can the fund delay selling the property to pay the death benefit?
Estate planning benefits can make a low-balance SMSF worthwhile
As estate planning and SMSF specialists, would we advise a client to set up a self-managed super fund (SMSF) in order to achieve a better estate planning outcome?
Succession law changes to affect blended families
Queensland has changed the way step children (and de facto spouses) are treated under the Succession Act 1981 (QLD). Superannuation death benefits of an individual can only be paid to eligible dependents. These include a member’s spouse or de facto spouse and child.