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 Death benefits.

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

Q: I have a life insurance policy owned by my self-managed super fund (SMSF) of approx $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?

Q: What is the difference between a binding death benefit nomination and a reversionary pension? Should a retail fund offer a reversionary pension option? The forms for my fund only mention binding death nominations.

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.

If you run a self-managed super fund don’t be expecting to invest in anything exotic, or to get up close and personal with fund assets, based on the latest preliminary recommendations from the Super System Review (SSR).