News : Death benefits

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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Death benefits, Pensions

Death pension okay without instruction

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, pension documentation, income stream, automatic reversionary pension, Accurium, Mark Ellem, trust deed, death benefits, trustee discretion, SMSF Professionals Day 2025

The pension of a deceased member can be retained in an SMSF even if there is no evidence the income stream was reversionary.

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Contributions, Death benefits, Superannuation, Tax

Benefits tax a factor in recontributions

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, recontribution strategy, taxable component, MLC, Scott Quinn, adult child, non-tax dependant, death benefit, government co-contribution, spouse contribution

Giving thought to the tax impact of death benefits paid to adult children may be a trigger to engage in a recontribution strategy.

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Death benefits, Division 296, Superannuation, Tax

Div 296 sparking death benefit discussions

self managed super, self managed superannuation, SMSF, death benefit tax, Division 296, Heffron, Meg Heffron, assets outside superannuation, tax

The Division 296 impost has prompted SMSF members looking at retaining assets in super to consider the tax impact of their death on their beneficiaries.

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Death benefits, Trusts

Unit trust bypass of SMSF unwise

self managed super, self managed superannuation, SMSF, transactions, payments, unit trust, death benefits, Accurium, Lee-Ann Hayes, Mark Ellem, SMSF Professionals Day 2025

Unit trust distributions to SMSFs should be executed in the cleanest way possible, especially when death benefits are involved.

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ATO, Death benefits

Six-month death benefit guidance removed

self managed super, self managed super fund, self managed super funds, self managed superannuation, SMSF, ATO, death benefit payments, cashing, SIS Regulation 6.21(1), QC 42934, six months, Shelley Banton, ASF Audits, QC 45254, exempt current pension income, ECPI

The ATO has amended the rules regarding the acceptable timeframe in which trustees can implement when making death benefit payments.

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Death benefits, Superannuation

Benefits payable to grandchildren

Cooper Grace Ward, Scott Hay-Bartlem, superannuation death benefit, Grandchildren, Will, SMSF, financial dependant, interdependency relationship

The nature of the relationship between a grandparent and their grandchildren will be the key driver determining if superannuation benefits can be paid to the latter.

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