Superannuation and Estate Planning:

Superannuation Funds provide great flexibility and estate planning opportunities provided careful planning and the correct documentation is used. In particular, if you have an SMSF there are potentially many cost advantages that can be obtained. In addition, SMSF's provide a high level of control and flexibility over investments which may be advantageous in terms of estate planning. Superannuation considerations often canvass transition to retirement strategies, investment strategies, contribution strategies and all other strategies. However, it is also very important know how to properly plan for death in a superannuation fund. Consultation with an experienced Tax and Superannuation Lawyer can ensure your superannuation is properly managed from an estate planning perspective.

Sometimes your superannuation may be more valuable than your other assets, such as your home or business. Therefore there should be just as much planning for Superannuation upon death as for the family home and other personal assets. Superannuation can provide an effective estate planning vehicle which retains investments that may be used for the benefit of future generations. By introducing younger generations as members of a Superannuation fund and with prudent contribution strategies, it may be possible to build up the fund to provide cash benefits for older generations and preserve assets used in the family business, such as real estate. Proper and holistic legal advice from a Superannuation and Taxation Lawyer coupled with sound financial advice may be hugely beneficial to ensure that your superannuation is properly structured and planned in the event of death.

Control is perhaps the most important element of Superannuation estate planning. Yet control is often overlooked. Control determines where and how superannuation death benefits are paid. Proper consideration of SMSF control upfront avoids costly and bitter legal disputes later upon death. There are three “levels” of control in an superannuation; control that a member exercises; control that a trustee exercises, and control over who is the SMSF trustee. Each level is vitally important. Control is vitally important in SMSF estate planning. It is control that actually determines where superannuation moneys are paid. How those moneys are taxed is often a secondary consideration. Control is a straightforward, albeit multidimensional, concept. Once each level of control has been considered, members can generally rest easy, comfortable in the knowledge that upon death their superannuation moneys will be paid in accordance with their wishes.

If you would like further information or wish to discuss your Superannuation matter with us please do not hesitate to contact us by telephone on (02) 9233 4048 or by email to info@navado.com.au. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.