- Presentations, Technical Resource
- Death benefits
Technical Summit 2023
We often hear about taking money out of super to avoid taxes being paid by adult children on their parent’s death benefit in circumstances when the parent is in poor health. While the strategy of reducing exposure to death benefit tax appears to have merit, is there a downside? How will the withdrawn proceeds be invested and what tax will be paid on income along the way?
This session considers whether there is break even time period after which leaving money inside super is expected to be more tax effective. Who takes responsibility for this type of advice?
Death benefit nominations also need to be considered with this strategy, how will super nominations compare with the will and what risks are posed by existing super. The session will consider the importance of flexible versus fixed death benefit nominations, including how they are relevant for contribution strategies and the dreaded $3 million soft cap.
The contents of this resource are taken to be correct at the time of publication.
Disclaimer: Technical Papers contain factual information only and are prepared without considering particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. The information contained in this document does not constitute advice given by the SMSF Association to you. If you rely on this information yourself or to provide advice to other persons, then you do so at your own risk. The SMSF Association is not licensed to provide financial product advice, legal advice or taxation advice. We recommend that you seek appropriate professional advice before relying upon the information in this technical paper. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this paper is not considered financial advice for the purposes of the Corporations Act 2001. © SMSF Association