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.
This post and some supporting materials may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we may have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. The material in this post is correct and complete as of the data it was posted. Viridian is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this site.