When cashing superannuation death benefits, it is important to understand:
- What is required under the SIS Act and SIS Regs
- What is required under the terms of the SMSF trust deed
- The taxation of superannuation death benefits under the ITAA 1997
The death of a member is a compulsory cashing requirement requiring a member’s benefit to be paid either to beneficiaries and/or the deceased member’s estate via their Legal Personal Representative (LPR) as soon as practicable after death (SIS Reg 6.21).
This issue of Technically Speaking will cover cashing super benefits including lump sums, pensions, rollovers and timing. It will also feature cautionary Transfer Balance Cap (TBC) strategy and death benefits.
The contents of this resource are taken to be correct at the time of publication.
Disclaimer: Technically Speaking bulletins contain general advice only and are prepared without taking in to account particular objectives, financial circumstances and needs. The information provided in this bulletin 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 in this bulletin 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