Death Benefits & SMSFs – planning for the inevitable
The Sole Purpose Test makes provisions for the payment of death benefits to a member’s beneficiaries both as a core and an ancillary purpose of super. The core purpose provides for death benefits paid prior to a members retirement whereas the ancillary purpose is the payment of a benefit after a member has retired, where the fund has already fulfilled its core purpose of paying the member a retirement based income stream. No matter the purpose death is a compulsory cashing requirement, and when cashed must be done in one of two forms, an income stream and or a lump sum withdrawal. The decision confronting surviving trustees when paying out a death benefit can be complicated by the death of a dominant trustee, insufficient documentation, conflicting documentation, conflicted beneficiaries and in some instances the death of the only trustee!
This webinar will work through a death benefit checklist to tick off issues associated with paying the benefit, appointing and removing trustees as well as future proofing the death benefit process as much as possible by pre-planning and documenting trustee and member decisions accordingly, including pension commencements.
At the end of this webinar, participants will have an appreciation for:
• Trustee powers when a member dies
• Pros and cons of reversionary pensions
• Taxation implications for both the fund and the beneficiaries
• The timeframes that need to be considered for the payment of death benefits
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Accredited CPD Education
SuperGuardian’s education activities are assessed against the SMSF Association’s professional education standards. Being recognised as an SMSF Association Accredited Educator enables us to work closely with the Association in lifting the standards of professional SMSF advice and services through quality SMSF education.
Tim Miller is one of Australia’s leading SMSF educators and presenters with over 23 years’ experience in the Superannuation industry. His experience has been gained through providing legislative and compliance support to thousands of Trustees, Accountants and Financial Planners since joining the SMSF sector in 1999. In addition to servicing the needs of SMSF clients, his practical and personable approach to compliance has made him a much sought after presenter.
Tim regularly presents at the major SMSF conferences and events, contributes to various trade and general publications and is the author of one of the subjects of the SMSF Association Graduate Certificate delivered through the University of Adelaide and Kaplan, which has also been adopted as part of the CA ANZ SMSF specialist program.
Tim is an SMSF Association Specialist Adviser.