Death of a member – Don’t just wing it

  • Presentations, Technical Resource
  • Death benefits

National Conference 2023

Dealing with the death of an SMSF member not only requires the trustee(s) to comply with superannuation law requirements and consideration of tax obligations, but there’s generally also the emotional aspect that comes with the close relationship of SMSF members and trustees.
 
Consequently, accountants, administrators and advisers generally play an important role in guiding their SMSF clients through this stressful period. In addition, the effect of the SMSF member’s death on audit requirements must also be considered.
 
The workshop will commence with a review of a timeline of duties, obligations and requirements for the SMSF trustee(s).
 
For each topic discussed, the associated audit requirements will be identified and direction provided on what audit evidence will be required to satisfy the SMSF’s auditor, enabling attendees to ensure the appropriate documentation is available for the fund’s audit.
 
Using interactive case studies, following this session you will be able to:
 
  • Explain the superannuation law requirements for when an SMSF member dies, including the consequences for the trusteeship of the SMSF.
  • Evaluate the options for the SMSF to continue to satisfy the SMSF definition.
  • Determine the income tax withholding and reporting obligations.
  • Assess whether there are any transfer balance account reporting requirements.
  • Analyse the SMSF income tax consequences of a member’s death and options available for claiming the cost of insurance.

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain general advice only and are prepared without taking into account particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to the individual circumstances of your client. 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 bulletin is not considered financial product advice for the purposes of the Corporations Act 2001. © SMSF Association