SMSF practitioners will need to consider clients’ estate planning needs at pension establishment more closely and continue to monitor them, as pensions have an important role within SMSF planning in the new super landscape, a technical expert has said.

A transition-to-retirement income stream (TRIS) is treated in a different manner to an account-based pension upon the death of an SMSF member if it is auto-reversionary and incorporates far greater complexity, a superannuation lawyer has warned.

Low-balance SMSFs may be worthwhile when combined with estate planning benefits unavailable in other super structures, a law firm has said.

SMSFs have now potentially become more of an estate planning vehicle after the implementation of the $1.6 million transfer balance cap, a sector strategist has said.

SMSF trustees need to be cautious that the new treatment of transition-to-retirement income streams (TRIS) does not lead to a breach of the transfer balance cap (TBC) introduced on 1 July, a senior SMSF technical practitioner has said.

The barrage of superannuation changes has kept SMSF practitioners busy, yet estate planning has been left on the back burner despite the clear implications of the new super rules on that area, particularly for couples with a combined balance over $1.6 million, according to a technical expert.

A legal firm has called on SMSF trustees to review their estate planning strategies to ensure death benefits are managed in the most prudent fashion in light of the $1.6 million transfer balance cap to be introduced on 1 July and the effect it will have in this area.

In the new world of superannuation starting on 1 July, a well-thought-out estate plan must consider key strategy options for trustees and members of an SMSF, according to an industry executive.