Recent ATO guidance has added confusion to situations where a member dies before their super benefit payment request has been made.

SMSF trustees should not rely on past private binding rulings when assessing if a member benefit can still be paid after the death of a member.

There remains uncertainty among advisers as to whether a prescribed period must be observed when considering the treatment of super death benefits.

Benefit payments requested before death but paid afterward can be tax-free only if an SMSF member has altered their relationship with their fund.

Trustees must examine all options when paying a death benefit even where a binding nomination seems clear cut and not open to a challenge.

Advisers need to be aware of the differing treatment of a death benefit pension with regard to the transfer balance cap and the total super balance.