Estate Planning Advisers Warn: “Know Where Your SMSF is Going if You Die.”
Announcement posted by Approved Financial Planners 16 Dec 2015
Estate planning advisers in Perth provide consumer guide to making sure an SMSF goes where it is intended after the owner dies.
Perth, WA, 16 December 2015 - It is important for those who have families and assets to make sure that their families have access to those assets in a timely manner and without paying excess taxes.
Recently, Financial Planner Daniel Stevens of Approved Financial Planners in Perth provided a guide on his company’s blog to help consumers ensure that their Self-Managed Superannuation Funds (SMSFs) were going to go where they are intended to go in the case of their death.
According to Mr Stevens: “Death is not something most of us consider, but it is inevitable for all of us. We like to help our clients protect their loved ones in the case of their deaths and one of the best ways to do that is to make sure their supers end up with the people who are supposed to get them and in a timely manner.”
Disbursing the Super in Case of Death
When someone dies, the money in their super plus any wealth protection or life insurance payments due to the super are added together to form the “death benefit.” The death benefit is then dispersed by the trustee of the SMSF to the dependants or the estate of the deceased. (1)
Any surviving spouse or former spouse, including de facto partners, are defined as “dependants.” Children under the age of 18 are considered dependants, as are anyone with whom the decedent had an interdependent financial relationship or anyone who was financially dependent upon the decedent. (1)
Binding and Non-Binding Nominations
The owner of a super fund can nominate people to receive benefits in a binding or non-binding manner. If the nomination is binding, the trustee is forced to pay one or more dependants or your legal representative who must pay the money according to your will. A non-binding nomination allows the trustee to make the final decision and the trustee is not required to follow any instructions. (1)
Taxation of Death Benefits
Taxation of death benefits can be complicated, but is determined by some basic factors. These include whether or not the decedent or the beneficiaries are older or younger than 60 years old, the benefit was paid as an income stream or a lump sum. If you are a dependant of the deceased, you do not tax on any component of a superannuation death benefit if you receive it as a lump sum.
According to Mr Stevens: “Estate planning can be complicated. That’s why we always recommend seeing a professional who can help guide you through the process and make sure your family is protected in their time of need.”
Approved Financial Planners offer strategic estate planning advice, financial planning, retirement planning, wealth protection and self-managed superannuation services in the Perth area. They specialise in helping people from widely divergent backgrounds and financial situations maximise their retirement and their estates while maintaining their current lifestyles. To learn more or to arrange an individual consult, call 1300 787 274 or visit their website: http://www.approvedfp.com.au/.
(1) Australian Securities and Investments Commission, MoneySmart, “Super Death Benefits,” https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/insurance-through-super/super-death-benefits. 21 August 2015.
(2) Australian Taxation Office, “Superannuation Death Benefits,” https://www.ato.gov.au/Individuals/Deceased-estates/Superannuation-implications/. 4 June 2014.
Approved Financial Planners
Daniel Stevens of Approved Financial Planners Pty Ltd ABN: 52 116 910 528, trading as Approved Financial Planners is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.
General Advice Warning
What you need to know.
Any advice contained in this Page is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters.
Recently, Financial Planner Daniel Stevens of Approved Financial Planners in Perth provided a guide on his company’s blog to help consumers ensure that their Self-Managed Superannuation Funds (SMSFs) were going to go where they are intended to go in the case of their death.
According to Mr Stevens: “Death is not something most of us consider, but it is inevitable for all of us. We like to help our clients protect their loved ones in the case of their deaths and one of the best ways to do that is to make sure their supers end up with the people who are supposed to get them and in a timely manner.”
Disbursing the Super in Case of Death
When someone dies, the money in their super plus any wealth protection or life insurance payments due to the super are added together to form the “death benefit.” The death benefit is then dispersed by the trustee of the SMSF to the dependants or the estate of the deceased. (1)
Any surviving spouse or former spouse, including de facto partners, are defined as “dependants.” Children under the age of 18 are considered dependants, as are anyone with whom the decedent had an interdependent financial relationship or anyone who was financially dependent upon the decedent. (1)
Binding and Non-Binding Nominations
The owner of a super fund can nominate people to receive benefits in a binding or non-binding manner. If the nomination is binding, the trustee is forced to pay one or more dependants or your legal representative who must pay the money according to your will. A non-binding nomination allows the trustee to make the final decision and the trustee is not required to follow any instructions. (1)
Taxation of Death Benefits
Taxation of death benefits can be complicated, but is determined by some basic factors. These include whether or not the decedent or the beneficiaries are older or younger than 60 years old, the benefit was paid as an income stream or a lump sum. If you are a dependant of the deceased, you do not tax on any component of a superannuation death benefit if you receive it as a lump sum.
According to Mr Stevens: “Estate planning can be complicated. That’s why we always recommend seeing a professional who can help guide you through the process and make sure your family is protected in their time of need.”
Approved Financial Planners offer strategic estate planning advice, financial planning, retirement planning, wealth protection and self-managed superannuation services in the Perth area. They specialise in helping people from widely divergent backgrounds and financial situations maximise their retirement and their estates while maintaining their current lifestyles. To learn more or to arrange an individual consult, call 1300 787 274 or visit their website: http://www.approvedfp.com.au/.
(1) Australian Securities and Investments Commission, MoneySmart, “Super Death Benefits,” https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/insurance-through-super/super-death-benefits. 21 August 2015.
(2) Australian Taxation Office, “Superannuation Death Benefits,” https://www.ato.gov.au/Individuals/Deceased-estates/Superannuation-implications/. 4 June 2014.
Approved Financial Planners
Daniel Stevens of Approved Financial Planners Pty Ltd ABN: 52 116 910 528, trading as Approved Financial Planners is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.
General Advice Warning
What you need to know.
Any advice contained in this Page is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters.