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Superannuation death benefits

On the death of a member, a death benefit is a payment from a super fund in the form of a lump sum payment (a superannuation lump sum death benefit) or income stream (a superannuation income stream death benefit).

Set out below are all SuperGuide articles explaining Superannuation death benefits.

SMSF pension earnings remain tax-free after death

SMSF pension earnings remain exempt from tax until a superannuation death benefit is paid to a dependant, or paid to the deceased member’s estate.The tax exemption on pension earnings remains in place regardless of whether the death benefit is paid as a lump sum, or as a pension, provided the … [Read more...]

SuperGuide checklist: 10 ways to save your super

The superannuation accounts of Australians have been affected by volatile investment markets in recent months, and you may be tempted not to focus on your super and retirement plans because of this volatility. Although you cannot control the investment markets (but you or your super fund managers … [Read more...]

Estate planning: Dear Dad, Tax for everything

If you plan to leave your super to your adult children when you die, your death benefit may be hit with benefits tax, even though you would have received that benefit tax-free (if aged 60 or over) while you were alive.The reason for this inconsistency is that superannuation death benefits paid … [Read more...]

Estate planning: Beware the dastardly death tax

Although superannuation death benefits are tax-free when paid to individuals considered ‘dependants under the tax laws’, a ‘death tax’ continues to apply when super monies are paid to individuals considered ‘non-dependants under the tax laws’.Any of your children aged 18 or over, who can’t prove … [Read more...]

SMSFs: If I die young, will my wife pay super tax on the life insurance payout?

Q: I have a life insurance policy owned by my SMSF worth approximately $2 million. Currently there is only about $80,000 accumulated in the fund. I am 40 years old. If I die tomorrow is my wife able access an income stream from the fund tax-free? For instance, upon my death if this $2 million was … [Read more...]

Same-sex couples: your super rights explained

Yet again, the government of the day has decided that it is not the right time to allow same sex couples to marry, notwithstanding most polls indicate a majority of Australians support this basic human right for same-sex couples. We have elected a Prime Minister who has publicly stated that he feels … [Read more...]

Guest contributor: Make your money live forever

“A man’s dying is more the survivors’ affair than his own.” – Thomas Mann“The beginnings and endings of all human undertakings are untidy.” – John GalsworthyWhile these quotations from Mann and Galsworthy are usually correct, it doesn’t have to be that way. Surely an important part of … [Read more...]

SMSFs: More money for Superannuation Complaints Tribunal

In the latest preliminary report from the Super System Review (SSR) (see article SMSFs: Nothing exotic or personal says Cooper Review), the SSR recommends that the Superannuation Complains Tribunal (SCT) have a greater role to play in the resolution of complaints over death benefit payments.The … [Read more...]

SMSFs: Nothing exotic or personal says Cooper review

Update: Good news for SMSF art collectors and SMSF trustees investing in other collectibles. On 30 July 2010, the ALP Government announced that it would not be adopting the Cooper recommendation to ban art and other collectibles from SMSFs. The Government has imposed stricter storage requirements … [Read more...]