Paying superannuation death benefits from an SMSF
This step-by-step guide aims to help you understand how superannuation death benefits are dealt with on the death of any member. It also identifies issues for trustees to personally consider as members, regarding the distribution of their personal superannuation death benefits.
DISCLAIMER: This guide does not seek to provide personal advice specific to your needs, it is intended only as a guide for illustrative purposes only. We encourage you to seek advice from an SMSF Specialist Advisor.
WARNING – Must consider superannuation benefits in an SMSF as part of overall estate plans
ATO statistics as at 30 June 2017 report median assets of an SMSF member to be $641,983 – a significant level of wealth to potentially transfer to the next generation. If left unchecked, a member’s wishes on how they would like their superannuation benefits to be treated may not be fulfilled. Effective SMSF estate planning can play a valuable role in ensuring a member’s wishes are fulfilled in a tax-efficient way.
Lessons associated with this course are reserved for members of our free community and SMSF Connect members.
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Course Content
Questions to ask before paying superannuation death benefits from an SMSF
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Question 1 - Does the member intend to instruct the trustee in how their superannuation is distributed on their death?
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Question 2 - Have you thought about who you intend to benefit from your superannuation death benefit?
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Question 3 - Can your SMSF pay a superannuation death benefit to your intended beneficiaries?
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Question 4 - Have you considered how superannuation lump sum death benefits are taxed to your beneficiaries?
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Question 5 - Have you considered how a death benefit pension is taxed to your beneficiaries?
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Question 6 - Has supporting paperwork been prepared?
- Question 1 - Does the member intend to instruct the trustee in how their superannuation is distributed on their death?
- Question 2 - Have you thought about who you intend to benefit from your superannuation death benefit?
- Question 3 - Can your SMSF pay a superannuation death benefit to your intended beneficiaries?
- Question 4 - Have you considered how superannuation lump sum death benefits are taxed to your beneficiaries?
- Question 5 - Have you considered how a death benefit pension is taxed to your beneficiaries?
- Question 6 - Has supporting paperwork been prepared?