Reversionary pension and binding death benefit nomination in South Australia

Reversionary Pensions and Death Benefit Nominations: Why Your Super Pension Needs Both

Superannuation, Wills and Estate Planning
Reversionary pension and binding death benefit nomination in South Australia

Many retirees drawing an account-based pension from their superannuation fund assume that a binding death benefit nomination is all that is needed to ensure their spouse or dependant continues to receive an income after they die. In fact, once a pension is already being paid, a separate and often more powerful mechanism – the reversionary beneficiary nomination – can determine what happens far more directly, and the two mechanisms can interact in ways that catch people out if not properly understood.

Binding death benefit nomination — superannuation estate planning in South Australia

Binding Death Benefit Nominations: The Superannuation Decision That Could Cost Your Family Dearly

Superannuation, Wills and Estate Planning
Binding death benefit nomination — superannuation estate planning in South Australia

Superannuation is, for many Australians, their most significant financial asset. Yet it is also one of the most misunderstood aspects of estate planning. A common misconception is that your Will controls who receives your superannuation when you die. It does not. Your super sits outside your estate and is governed by an entirely separate legal framework — one that hinges on a critical document known as a Death Benefit Nomination.

SMSF Succession Planning: Why Your Self-Managed Super Fund Needs Its Own Strategy

Estate Planning, Superannuation
SMSF succession planning in Australia

Self-managed superannuation funds (SMSFs) are one of the most powerful wealth-accumulation vehicles available to Australians, and for many families they represent the single largest asset outside the family home. Yet despite their significance, the succession planning dimensions of SMSFs are frequently neglected or poorly understood. A comprehensive estate plan that addresses your Will, enduring power of attorney, and advance care directive, but leaves your SMSF succession arrangements to chance, is incomplete in a way that can have serious and expensive consequences for your family.

Superannuation death benefit nomination and estate planning in Australia

The Ticking Time Bomb in Your Estate Plan: Why Your Superannuation Death Benefit Nomination Matters More Than You Think

Superannuation, Wills, Wills and Estate Planning
Superannuation death benefit nomination and estate planning in Australia

For many Australians, superannuation is the largest single asset they will accumulate over a working lifetime. Yet despite its size, superannuation is also one of the most misunderstood assets from an estate planning perspective. The critical point — one that surprises many clients — is that your superannuation does not automatically pass according to your Will.

a death tax by stealth

A Death Tax by Stealth

Superannuation and Insurance
a death tax by stealth

Did you know that your superannuation savings could be subject to a hefty tax when you die?

Most people don’t know it, but there are death taxes by stealth in Australia.

While it’s not an inheritance tax per se, if it looks like a duck and quacks like a duck …. Millions of Australians’ retirement savings are taxed upon their death, and yours could be too!

self managed super fund is your reversionary pension really binding

SMSF – Is your reversionary pension really binding?

Superannuation and Insurance
self managed super fund is your reversionary pension really binding

A super fund is, at its most basic, simply a ‘trust’.

The ‘trustee’ of the super fund holds the ‘member’s balance’ on trust for the ‘member’.

What most people don’t realise is that because the super fund is a trust, it’s governed by the rules of equity that set out how trusts must be run.

Let’s say you have a SMSF (Self Managed Super Fund) and you receive a super pension during your lifetime, and on your death you want your pension to be paid to your surviving spouse.

super death benefits what could go wrong

Super death benefits – what could go wrong?

Superannuation and Insurance
super death benefits what could go wrong

If you are in a retail super fund, then your choices as to whom and how your super is paid after you die may be limited.

You will generally be able to specify ‘who’ gets your super, and in what ‘proportions’.

You generally will not be able to specify specific amounts, nor specify even basic “what if” scenarios, such as “If Jonny is under 25 he is to get 75% of my super, otherwise my super is to be split equally among my children”.

super asset protection

Super Asset Protection

Superannuation and Insurance
super asset protection

In addition to providing for retirement, funds properly accumulated in a regulated superannuation fund have risk management benefits if financial adversity occurs and the person needs the protection of bankruptcy.

A common stress for older people who need to become bankrupt is that they will not have time to recover from the financial adversity they have experienced.

The good news is that funds held in a regulated superannuation fund are protected and are not available to the bankruptcy estate.

separation divorce and superannuation

Separation, Divorce and Superannuation

Superannuation and Insurance
separation divorce and superannuation

Did you know that your ex may be able to claim half your superannuation, even if you aren’t married?

Although moving in with your significant other can be exciting, under certain circumstances, this could spell disaster for your superannuation.

Moving in together is an exciting time for people in relationships. Likely the last thing on your mind is what might happen in the event of a break-up.

paying superannuation death benefits

Paying Superannuation Death Benefits

Superannuation and Insurance
paying superannuation death benefits

A superannuation death benefit is a payment made by a super fund to a dependent beneficiary or to the trustee of a deceased estate after the member has died.

The trustee of the super fund should make this payment as soon as possible after the member’s death.

The form of the benefit payment, and who it is paid to, will depend on the governing rules of your fund and the relevant requirements of the Superannuation Industry (Supervision) Regulations 1994 (SISR).