What happens when I pass away – SMSF?

As we mentioned last week there are many benefits to creating a SMSF, one of the questions we often get is “that’s great but happens when I pass away?”

Superannuation Estate Planning:

When we ask “Do you have a will?” either people will say yes or no. “When we ask “Do you have a Super Will or nominations in your Super Fund?” most people say it’s covered in my will.  Unfortunately a Super Fund is not covered nor controlled by your will. It needs its own Super Will or nominations to be put in place to ensure that the money in your Super Fund goes to the people that you want it to go to.

It is especially important to dictate the terms of your Super on your passing when you have blended families or warring siblings. Many “No Win-No Fee” lawyers are willing to challenge any and all estates.

It is always best to draft this documentation with a lawyer who is conversant/specialises in the area of superannuation to ensure that you accomplish exactly what you are after, with superior tax outcomes. If you have SIS dependants (Spouse/Partner, child under 18) you may be able to leave a “taxable” pension which is TAX FREE in their hands.  Likewise you can setup “pensions” that only allow income to be given to the spouse while they are alive with the capital reverting back to your children.

Tax Benefits to your beneficiaries that can be obtained on your passing:

Under certain circumstances the Super Fund can make Anti-Detriment Payments to your family members, which can also benefit the remaining member’s in the Super Fund by allowing large tax deductions in the fund rendering the fund tax-free for many years after the death of a member.

Now that you have seen all of the benefits over the last 2 weeks you are probably wondering if it is still right for you:

Our team at McMahon Osborne Group are happy to sit with you and discuss your own personal circumstances in an obligation free 45 minute appointment.  If you would like to take up this offer please call our office to make an appointment.

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