Super strategies after losing your spouse: What are the rules?
Deciding whether to take your partner’s super death benefits as a lump sum, pension or a bit of both requires careful planning; the earlier the better.
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Your superannuation death benefits will generally be paid to one or more of your dependants (or your estate) when you die. You can make a binding death benefit nomination while you are alive to direct how your super balance will be distributed. If you don’t, the trustee of your fund has the discretion to determine who should receive your super death benefit when you die (unless the benefit is a reversionary pension).
The taxation of your superannuation death benefit payments will depend on:
Deciding whether to take your partner’s super death benefits as a lump sum, pension or a bit of both requires careful planning; the earlier the better.
There are at least 5 different types of death benefit nomination to choose from if you want to decide who will get your super death benefit.
Having your super pension automatically revert to your spouse can be an easy way to ensure your spouse’s financial situation is taken care after your death.
The tax on your super death benefit can be tricky to understand, but it’s important to know what’s what so your beneficiaries don’t end up paying too much tax.
How to deal with a partner’s death benefits has just become more complicated. We use a case study to show why.
An anti-detriment payment is an additional lump sum amount paid to the eligible dependant of a super fund member who dies (in addition to a lump sum death benefit that is paid to the dependant on the super fund member’s death).
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