What happens to your superannuation when you pass?

What happens to your superannuation when you pass?

What happens to your superannuation when you pass? 1280 720 Stephen Manassah

It’s human nature to prioritise the now instead of the future. You couldn’t blame anyone for spending more time fantasising about that next holiday or given the absence of travel, maybe that new car, rather than considering their estate planning needs.

Estate planning shouldn’t always be top of mind, but it is important. We all want to make sure everything we’ve worked for ends up in the right hands… well that’s if you haven’t managed to enjoy it all yourself while you’re here!

Understanding what happens to our superannuation when we pass, is just one of the key ways to ensure this.

A common misunderstanding is that superannuation is always directed via an instruction in our Will but this is dependent on whether the person who has passed made a Death Benefit Nomination, and if so, what form of Nomination that was.

But what about Self Managed Super Funds (SMSF’s)?

The same rules apply to benefits paid from a SMSF. However, in some respects, succession planning is more complex.

We may need to check if our Trust Deed permits the member to give the Trustee either a binding or non-binding death benefit nomination and from there we may want to consider having a Trustee succession plan in place.

Whilst each circumstance is entirely unique, whether you have a SMSF or a retail superannuation fund, being prepared is a crucial part of planning your estate, and ultimately ensuring things get left in the way that works best for you and your family.

Stephen Manassah is a Senior Financial Advisor at Viridian Advisory.

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