SMSF for Estate Planning

As with all superannuation funds, with a SMSF, you can choose who receives your super benefits upon your death.  If set up correctly, the benefits can be transferred tax free to your spouse, or dependants.

SMSF for Estate Planning

Estate Planning and SMSF’s are a complex area. Before you take any steps, we would encourage you to contact our office on 1300 363 820 for an appointment with one of our SMSF Specialist Advisors.

There are several options available when making a death benefit nomination in your SMSF:

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No Nomination

Where you have not made a nomination in relation to your death benefits or that nomination is invalid, your benefit may be paid to one or more of your dependants (if any), and/or to your Legal Personal Representative at the discretion of the remaining trustees of your fund.

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Non-Binding Nomination

You can choose to have a non-binding nomination which provides advice to the other trustees of your wishes. As the nomination is non-binding, the remaining trustees can choose to ignore your wishes.  As with the situation where there is no nomination, your benefit may be paid to one or more of your dependants (if any), and/or to your Legal Personal Representative (Estate) at the discretion of the trustees.

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Lapsing Binding Nomination

A binding death nomination gives you the peace of mind knowing that, in the event of your death, your hard-earned superannuation benefits are distributed in accordance with your wishes.  A lapsing binding nomination is valid for a period of up to three years.

A lapsing binding nomination can be a good idea, as it ensures you periodically review your nomination to see if it still suitable.  We will take care of reminding you that the nomination needs renewing.

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Non-Lapsing Binding Nomination

A non-lapsing binding death benefit nomination is similar to a lapsing binding nomination but does not expire. If you’re sure about the way you want your benefits to be paid on death, this could be the right choice for you.

SMSF for Estate Planning FAQ's

What are death benefit arrangements?

Death benefit arrangements are documentation that allow you to nominate person/s who you wish to receive your superannuation death benefits upon your death.

Who can I nominate under these death benefit arrangements?

You can nominate your dependant/s and/or your Legal Personal Representative(Estate).  Dependants include:

  • Spouse (includes both opposite and same-sex de-facto partners)
  • Children under the age of 18
  • Other financial dependents
  • Interdependents
What are the benefits of these death benefit arrangements?

Death benefit arrangements allow you to have better control of where your superannuation death benefits will be directed (particularly with a binding nomination). 

What do I need to consider with a death benefit arrangement?

There are a range of things you need to think about before establishing a death benefit arrangement within your superannuation fund:

  • Should you decide to leave your superannuation to your Estate, your Will needs to reflect your current wishes
  • Particular attention must be paid where there are blended families, as this may involve the preparation of a more complex nomination
  • You will need to choose the type of death benefit arrangement that best fits your individual circumstances

A professional can help provide you with advice on the above matters.

Estate Planning and SMSFs are a complex area.

Before you take any steps, we would encourage you to contact our office for an appointment on 1300 363 820.

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