Seamlessly Integrating Superannuation into Effective Estate Planning

Estate Planning: Maximising Asset Protection

Legalwise

As I am sure most readers of this paper will be aware (although most super fund members are not) super benefits do not automatically form part of a member’s estate upon the death of the member. As such, a member’s will cannot deal with their super benefits, unless the benefits are paid to the estate of the member. Consequently, a person’s super benefits must be dealt with separately in the estate planning process. Rather than dealing with super in a person’s will the tools for dealing with super death benefits are binding death benefit nominations (BDBNs), reversionary pensions, and the control of the decision making process through the control of the super fund trustee.
In this paper I examine how to incorporate super into the succession process. In particular, the use of BDBNs and reversionary pensions and the interaction between the two and the succession of the super fund trustee is examined.
In this paper I have concentrated on the use of BDBNs and reversionary pensions in relation to self managed superannuation funds (SMSFs), although I touched on other superannuation funds, such as public offer super funds.
All references in this paper are to the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation Industry (Supervision) Regulations 1994 (SIS Regs) unless otherwise stated.

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