SMSF succession planning

There are many strategies that can be implemented during a self-managed superannuation fund (SMSF) member’s lifetime to increase certainty about what will happen to their super balance following their death.

A commonly used strategy is for the member to have a valid binding death benefit nomination (BDBN) in place, that directs their super balance to particular beneficiaries (provided they are dependants) or to their estate to be dealt with under the terms of their will. However, BDBNs may only be a partial solution.

Another commonly used strategy is for the SMSF to have a sole purpose corporate trustee rather than individual trustees. Following the death of an individual trustee, the SMSF deed determines who should be appointed as trustee in the deceased’s place. The deceased’s executors do not automatically become a trustee.

Further this corporate trustee strategy provides for enhanced long-term SMSF succession. What really matters is who controls the SMSF. The shareholders of the corporate trustee could gift their shares (and hence control of the corporate trustee) to their surviving spouse or children.

Roberts & Morrow can review your SMSF succession needs and ensure that when the time comes, your SMSF succession runs smoothly, effectively and as intended.

Recent Articles

Proposed broadening of NSW Landholder Duty

02nd December 2019

Landholder duty only applies to relevant acquisitions of shares in companies or units in unit trusts that hold interests... Read More

Discretionary trusts – Take action now to avoid extra land tax and stamp duty charges!

22nd November 2019

In NSW the extra 8% stamp duty and extra 2% land tax surcharges for foreign persons, trusts and companies... Read More

Update on drought assistance

21st November 2019

The NSW Government Department of Primary Industries shares regular updates on drought assistance initiatives as they become available. Click... Read More

We've got an app!

21st November 2019

Roberts & Morrow has launched an app available for download from the App Store for the iPhone/iPad or from... Read More