Testimonials


I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC


Super Facts and Tips

Self-Managed Super Fund (SMSF) Estate Planning

Unfortunately, many people relying on an old law which deal with doing a binding death benefits accumulation inside a self-managed super fund.

There's been a case like this with Donovan and a commission's ruling which says that the law which provides the ability to do a binding death benefits nomination only applies to industry and retail funds. To determine what you want to do regarding passing out your wealth, and there are a couple of strategies around this regarding the self-managed super fund, what you need to do is focus back on the trustee.

Getting a good Trustee is Crucial

It's crucial that you get a good administrator. All the strategies that the experts talk about are immaterial if you have an old date. And by the early date, we mean something that pre-dates 2010. You need to update your deed, at least, every couple of years because the laws change that much every couple of years. As we have said, binding nominations, along with the latest binding rules, weren't around in 2010. There have been changes to cases.

Regarding real estate planning, you need to consider your tax options. There are two sides to tax in a fund. There is an account of an accumulation fund and the pension side. Remember the 15% and also the 0% side. Now this is how it works. If you die while you're still on the accumulation side, then you need to plan for it beforehand. If you don't plan for it, the trustee of the fund has complete discretion as to what they want to do. And that's not a good place to be.

So what you want to do is sit down and start to make a plan for what happens there. And we can do it down and set binding directions to the trustee. It's like a contract between you and the trustee of the fund, or the future trustees of the fund. This is what you want to happen in the event of your death. What some practitioners call it an SMSF Will.

The SMSF will is simply a set of binding directions that deal directly with your super benefit, with that money being passed out according to your wishes to your dependents, or moving it to your estate. The advantage of paying it out directly to your dependents, and dependents on this instance include your children, or anybody who's financially dependent on you, and your spouse, is that it can't be challenged at law.

If you pay money out to the estate, there can be challenges or attacks on that superannuation money under the family provisions act. Be careful though because each state has its benefits. You probably want to seek the advice of the experts to help you figure things out. You can consult our experts by calling 1300 252 167

All information on this website is of a general nature only. We have not taken into account your financial situation, needs or objectives. You need to make up your own mind and ascertain yourself if it is right for you. We recommend you read the product disclosure statement(s) and the financial services guide before making any financial decision.

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