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: 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