News : Death benefits

Death benefits, Tax

Use Div 296 to open death tax discussion

Division 296 tax death benefits SMSF Self-managed superannuation Large balances Heffron Meg Heffron

The potential impact of the proposed Division 296 impost should be a trigger to open conversations around death benefit taxes and reducing large balances as both will carry a cost for fund members.

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Death benefits

Benefits can extend beyond dependants

Knowledge Shop Jason Hurst death benefits estate planning SIS dependants tax dependants superannuation

Individuals not classified as dependants under the SIS Act can still receive SMSF death benefits, but specific estate planning steps are required to make this possible.

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Death benefits, Estate Planning

Deed must allow executor appointments

Knowledge Shop Jason Hurst SMSF trust deed Executor Self-managed superannuation Death benefits SIS Act

SMSF trustees who want their executor to act for them inside their fund must ensure the deed allows that appointment as the law will not force that action.

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BDBNs, Death benefits, Documentation

BDBNs still contain basic error

binding death benefit nomination BDBN SMSF Self-managed superannuation View Legal Matthew Burgess SIS Act

Errors are still being made on SMSF binding death benefit nominations with regard to naming a legitimate recipient of the deceased member’s benefits.

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Death benefits

View death benefits as ancillary purpose

SMSF Self-managed superannuation Smarter SMSF SuperGuardian Tim Miller Death benefits Sole purpose test

SMSF trustees should view the payment of death benefits as an ancillary purpose rather than a core purpose of the fund to ensure it remains compliant with the sole purpose test.

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Death benefits, Estate Planning, Pensions

Death beneficiary must be confirmed

Death benefit Reversionary pension Pension Beneficiary

Confirmation as to whom death benefits should be assigned needs to be established before a reversionary pension is implemented.

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Death benefits, Legislation, Superannuation

Super bodies push for death benefit reform

Superannuation death benefit payments Violence Superannuation Industry (Supervision) Act Forfeiture rule ASFA Death benefits Forfeiture rule

A coalition of superannuation bodies has called for perpetrators of violence to be prevented from claiming their victim’s super benefits.

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Death benefits, Estate Planning

EPOA limits are prudent

Enduring power of attorney Mental Incapacity SMSF Self-managed superannuation Trust deed Binding death benefit nomination Scott Hay-Bartlem Cooper Grace Ward

It is prudent to place limits on any enduring power of attorney regarding an SMSF, particularly when estate planning strategies are involved.

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ATO, Death benefits, Estate Planning

Benefit destination may change tax treatment

ATO Death benefit dependant Superannuation Private ruling

The ATO has ruled a death benefit unable to be paid to a defined dependant cannot be received by their estate in the same form and loses any tax special tax treatment.

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Death benefits, SMSF

EPOA actions for ill member stifled

EPOA Enduring power of attorney Anthony Cullen SMSF Self-managed superannuation Accurium

Several different factors can restrict the ability of a person who is a death beneficiary and has an EPOA to exit the assets of a dying SMSF member.

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