Your SMSF clients need to be aware of the strict rules that apply, affecting who can receive a death benefit, the form in which it is paid and timing of the payment. Failure to adhere to the rules can mean SMSF trustees risk breaching superannuation standards and could also be fined by the Regulator.
Until clarity is provided by the ATO caution will need to be exercised (by practitioners and SMSF trustees) before a death benefit pension is fully commuted and paid to the dependant, especially when they have previously received lump sum death benefits.
To assist you in communicating this important issue to your SMSF clients we have prepared the below white label document for your use.
At the time of publishing, the contents of this resource were accurate and correct.
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