News : Death benefits

Death benefits

Death should not alter benefit payment

A legitimate request from a member for a benefit payment should be the key driver behind its payment and death should not alter its treatment.

A legitimate request from a member for a benefit payment should be the key driver behind its payment and death should not alter its treatment.

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Auditing, Death benefits

Auditors can question slow benefit payments

SMSF auditors can still judge whether a trustee is lagging in the payment of death benefits even if official guidance does not mention timeframes.

SMSF auditors can still judge whether a trustee is lagging in the payment of death benefits even if official guidance does not mention timeframes.

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Death benefits, Estate Planning, Tax

Insurance can be untaxed death benefit

A rare set of circumstances involving insurance in an SMSF can cause a death benefit to be untaxed when passed on to a beneficiary.

A rare set of circumstances involving insurance in an SMSF can cause a death benefit to be untaxed when passed on to a beneficiary.

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Compliance, Death benefits, Strategy

Proper trustee discretion key in death

Trustee discretion must meet certain thresholds set by the courts for decisions made under this power with regard to death benefit distributions.

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Death benefits, Documentation

Death benefits not reliant on probate

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, death benefit, deceased member, Accurium, Jason Hurst, trustees, probate

In the majority of circumstances, SMSF trustees do not need to wait for probate before they can pay death benefits from a super fund.

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Death benefits, Legislation

Time limits still apply to fund payments

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, ATO, death benefit, reasonable timeframe, Heffron, Lyn Formica, six-month rule, guidance, Sean Johnston, payment, sale of asset

The absence of a specific timeframe in ATO guidance to pay a death benefit does not mean trustees have unlimited time to do so.

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Death benefits, Estate Planning, Legislation, Regulation

Death benefit payment timeframe gone

The ATO’s guidance suggesting a timeframe of six months is the definition of ‘as soon as practicable’ for death benefit payments has been removed.

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Death benefits, Division 296, Estate Planning, SMSF, Tax

Div 296 drives estate planning urgency

SMSF members retaining high balances inside super will need to be proactive in their estate planning to avoid a further post-death tax hit.

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Administration, Death benefits, Estate Planning, financial advice, Financial Planning, SMSF, SMSFA

Death does not stop income allocation

The distribution of fund income may need to be made to an SMSF member even though the individual in question has passed away.

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Administration, Death benefits, financial advice, Financial Planning, Pensions

Death must halt auto pension payments

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, automatic pension payment, income stream, death benefit, reversionary pension, Accurium, Natalie Scott, lump sum, death of member, executor

Automatic pension payments made from an SMSF must be stopped when the recipient dies to avoid the misclassification of these amounts.

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