Neglecting to plan ahead to ensure SMSFs can continue if trustees lose their mental capacity can result in catastrophic financial consequences, a lawyer has warned.

For many people, their superannuation is their biggest asset when they retire – and often when they die as well.

The recent draft laws on reversionary transition-to-retirement income streams (TRIS), if enacted, will eliminate the adverse result of decreasing the reversionary beneficiary’s chance of receiving Centrelink benefits, or missing out altogether.

The federal government has released exposure draft legislation allowing a reversionary transition to retirement income stream (TRIS) to automatically be transferred to an eligible dependant upon the death of the member receiving the pension without the beneficiary having to satisfy a condition of release.

Investment bonds are proving to be a popular alternative estate planning strategy, particularly among older SMSF trustees with super balances greater than the $1.6 million transfer balance cap, according to Australian Executor Trustees (AET).

The amount of estate planning work SMSF clients will require in order to comply with the new super changes will put pressure on specialist adviser demand, which has the possibility to fall short, according to an industry lawyer.