Reminder: Minimum annual payments for Superannuation Income Streams in 2014 / 15 including SMSF Pensions.


Yes the Government have been messing about with the system so much over the last few years that many clients have been totally confused and had to confirm their minimum pension payments for last year so I thought I would just remind everyone of this years limits so they can put their payment plans in place.

How much to take to stay compliant with your pension

How much to take to stay compliant with your pension

If you started a pension or annuity on or after 1 July 2007, a minimum pension amount is required to be paid each year. There is no maximum amount other than the balance of your super account, unless it is a transition to retirement pension in which case the maximum amount is 10% of the account balance.

The minimum payment amounts will not be reduced for the  2014-15 year. The following table shows the minimum percentage factor (indicative only) for each age group.

Age

Minimum % withdrawal (2014-15)

Under 65

4%

65-74

5%

75-79

6%

80-84

7%

85-89

9%

90-94

11%

95 or more

14%

Note that these withdrawal factors are indicative only. To determine the precise minimum annual payment (especially for market linked income streams), see the pro-rating, rounding and other rules in the Superannuation Industry (Supervision) Regulations 1994.

For rules and limits on other Payments from super here are the relevant links to the ATO site.

Low rate cap amount

Untaxed plan cap amount

Minimum annual payments for super income streams

Preservation age

Super lump sum tax table

Super income stream tax tables

Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why not contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options. Please reblog, retweet, put on your Facebook page if you found information helpful.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Why Self Managed Super Funds Should Have A Corporate Trustee


Why I believe it is essential to have a company as trustee and the options to have individual trustees is short-sighted  Time to Decide

The over-riding benefits of having a corporate trustee, rather than individual trustees, are summarised in the following comparison table:

Corporate Trustee

Individual Trustees

Time to Grieve or Adapt

The one main reason from 10 years experience with   SMSF’s for having a Corporate Trustee is respect for your spouse or family’s   needs in times of grief. Do you really want to leave them an onerous awkward   and expensive set of tasks to carry out just because it saved you $700

Paperwork at the worst time

Welcome to a nightmare. You have just passed away   and your spouse has barely had time to start grieving but they need to manage   the SMSF to administer pensions, investments and deeds. Minutes to record   death of Trustee, Deed update to add a new Trustee or move to a Corporate   Trustee, Off market transfer forms and identity forms and probate forms to   put every investment in correct name(s). Worse still, deal with the Land   & Property Management agency or Office of State Revenue and their endless   forms!

Continuous succession

A company has an indefinite life   span; in other words, it does not die. Therefore, a corporate trustee can   ensure control of an SMSF is more certain in the circumstances of the death   or mental or physical incapacity of a member.

Problems upon death

If the SMSF has individual trustees, e.g. a   husband and wife SMSF, then timely action must be taken on the death of a   member to ensure the trustee/member rules are adhered to properly. (SMSF   rules do not allow a sole individual trustee/member SMSF.)

Administrative efficiency

When members are admitted to, or cease,   membership of the SMSF, all that is required is that the person becomes, or   ceases to be, a director of the corporate trustee. The corporate trustee does   not change as a result. Therefore, title to all the assets of the SMSF   remains in the name of the corporate trustee. Especially useful when dealing   with property in an SMSF.

Extra and costly paperwork

To bring in a new member to an SMSF   with individual trustees requires that person to become a trustee. As trust   assets must be held in the names of the trustees, this will require the title   to all assets to be transferred to the new trustees when a member is admitted   to or exits the fund.

Sole member SMSF

You can have an SMSF where one individual is both   the sole member and the sole director. Likewise if you are mentally   incapacitated then your spouse can act as director under an enduring Power of   Attorney to run the fund on their own without the need for interference by   others.

Sole Member SMSF

A sole member SMSF must have two individual   trustees. Does your spouse need to rely on your children, possibly from your   first marriage! That’s really not going to work as we know what a problem   blended families are when it comes to Estate Planning.

Meets Lenders Requirements

If you want to borrow to buy a property via your   SMSF then most lenders will require a Corporate Trustee of the SMSF as that   is easier for them to deal with.

Restricts Pool of Lenders

If you do not have a corporate trustee the you   are limiting the number of lenders that will consider your SMSF for a loan

Higher LVRs accepted

With a Corporate Trustee many lenders will go to   80% on Residential loans and 70% on Commercial Real Estate

Lower LVRs commonplace

Due to legal concerns many lenders restrict the   maximum borrowing , if any, of a SMSF with Individual Trustees to 705 for Residential   Properties and 55-60% for Commercial Real Estate

Greater asset protection

As companies are subject to limited liability, a   corporate trustee will provide improved protection for the directors where a   party sues the trustee for damages. I use an electrician as an example here   when I cover this with clients. If he is comes on your property and is electrocuted because of the owners (SMSF) negligence then the SMSF may be   sued but your own personal liability is limited to your shareholding and member   balance rather than your entire wealth.

Less asset protection

If an individual trustee suffers any   liability, the trustee’s personal assets may be exposed. Be careful of hiring   a tradesman to work on a SMSF property as if they get injured they may sue   you in your capacity as Trustee of the fund as well as the SMSF itself.   Without the protection of Limited Liability provided by a Trustee Company   your other assets may be at risk.

What the ATO and ASIC think?

ASIC and the ATO prefer Corporate Trustees too. Last year, ASIC released a number of documents which outlined the advantages of having an SMSF corporate trustee.
More recently, the ATO have released a website and the following video that objectively outlined the pros and cons for corporate and individual trustees.

If the ATO’s comments are analysed in more detail, it is clear that there is an endorsement for SMSFs to have a corporate trustee.

The easiest way to comply with the ownership rules is for your fund to have a company set up solely for the purpose of being the corporate trustee of the fund.

If there is a change in directors of the company, you don’t have to change the name on the ownership documents for each fund asset as the trustee of the fund has not changed. Having a separate corporate trustee also reduces the chance of personal assets becoming intermingled with fund assets

Do you need more? Additional Advantages of a Corporate Trustee

  1. With a bit of preparation and planning combining use of your Will and Enduring Powers of Attorney, minuted resolutions and if needed clauses written into the deed a person (usually the “Executor” or “Legal Personal Representative”) can be immediately appointed as director so that the Fund can continue to operate in the event of death regardless of whether a death certificate or probate have been granted.
  2. Likewise when a person loses mental capacity (as with Alzheimer’s) that person will need to be replaced as the trustee of the fund if they were individuals but with a company the Constitution can immediately have a mechanism which allows the person holding the Enduring Power of Attorney to be appointed as a replacement director, resigning the incapacitated director at the same time.
  3. If under the new Administrative penalties rules a fine/penalty is made in relation to self managed superannuation fund that has individual trustees then each of them will be fined in their personal capacity while if it is a Corporate Trustee then only the one fine amount is payable. This means that if you have 2 individual trustee then you may pay double the fine of a fund with a corporate trustee and remember the fine is personally payable and not allowed to be reimbursed by the fund.
  4. Guaranteed compliance with SIS regulation 4.09A(2)(a)? It provides:A trustee of a regulated superannuation fund that is a self managed superannuation fund must keep the money and other assets of the fund separate from any money and assets, respectively: … (a) that are held by the trustee personally …As you will appreciate, it is easy for this regulation to be contravened where an SMSF has individual trustees (eg, if an individual trustee mixes their own assets with those of the SMSF). If however, you have taken our advice and the SMSF has a corporate trustee where the corporate trustee’s sole function is to act as trustee of the SMSF, then regulation 4.09A(2)(a) becomes almost impossible to contravene! This is because the trustee is unable to mix fund assets with its personal assets as it’s unlikely to have any personal assets.

Therefore an SMSF that has a sole purpose corporate trustee  is almost always guaranteed to comply with these rules

For further information on the issues raised in this blog please contact us at our Castle Hill or Windsor office or send an email.

I hope this guidance  has been helpful and please take the time to comment. Feedback always appreciated. Please reblog, retweet, put on your Facebook page etc. to make sure we get the news out there to those setting up new funds.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Skeletons in the Cupboards and Tax Man at the Door – Estate Planning Solutions for SMSF members


Here is one solution to a big problem that may become more common with blended families and increased divorce as well as de facto arrangements.     SMSF Estate Planning

Our client , lets call him , Scott (age 78) is a widower in the Hills district and he has a $652,000 account based pension (containing a 100% taxable component to keep it simple). His two adult daughters who are financially independent are noted as 50/50 beneficiaries on his non-lapsing binding death benefit nomination (see here for more details). Any lump sum death benefit they receive will be subject to 17 per cent tax. In dollar terms, this is $110,500 (calculation: $652,000 x 17%) and he wasn’t too happy about this.

Scott was advised by his specialist he has 2-3 years maximum to live due to an aggressive cancer. He threw this curly one at me to come up with a strategy as he wants to maximise his estate for his kids but also retain access to the funds while alive to fund medical and living expenses. Our strategy involves Scott taking a tax-free withdrawal from his account based pension. He then let me know about some skeletons he had in his cupboard!

Scott could retain these funds within a bank account, however the account will form part of his estate upon his death. Even though his estate will be paid predominately to his adult daughters, he is concerned about his estranged son from an affair he had in his late 50’s who might challenge the Will.

We advised that a valid alternative available to Scott is to invest into an investment bond with himself as the owner and the life insured. Since an investment bond is a non-estate asset, upon his death the funds will be paid tax-free to his adult daughters.

Both strategies will avoid the $110,500 of death benefits tax on funds paid to his daughters, however only the investment bond will ensure the funds do not become part of his estate. Scott’s two daughters need only produce a copy of his death certificate to gain access to the funds within the bond. This could also avoid lengthy delays with the administration of the estate and overcome possible estate challenges from his estranged son.

In terms of costs we were looking at foregoing the tax-free status in pension phase for the 2 years but that was far outweighed by the savings in the death benefits tax and we are actually able to wind up the SMSF  to save his children the hassle of dealing with that later.

For further information on the issues raised in this blog please contact our Castle Hill SMSF Centre or Windsor Financial Planning Office or choose an appointment option here 

I hope this guidance  has been helpful and please take the time to comment. Feedback always appreciated. Please reblog, retweet, put on your Facebook page if you found information helpful.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Think twice before cancelling insurances as you get older.


Do you know that the average person cancels their personal insurance about 1-2 years before an claimable illness strikes! The average age a person discontinues one or more of three types of living insurance policies – cover for disability, critical illness/trauma and income protection – is 45 years yet the average age for a claim is 46.5 years. (source TAL)

As mentioned in a previous blog the SMSF regulations now require Self Managed Superannuation Fund Trustees to consider Insurance as part of the SMSF Investment Strategy . TheRisk Management following applies to everyone regardless of the type of investor you are or the structure you use to save for retirement.

I see many clients in our Castle Hill and Windsor offices in their late 50’s who have cancelled their life and income protection insurances before they have come to see me. Usually they say it is because they have paid off their mortgage and are debt free so they didn’t feel they needed cover any longer.

Their focus now was on expense reduction and saving via salary sacrifice to superannuation and even some after tax contributions from savings.

While it is great to see them focus on saving for retirement and budgeting, what they don’t realise is that in cancelling insurances it is their retirement lifestyle or that of their spouse they are no longer insuring and not just their current needs.

With 5-15 years of focused savings towards a retirement nest egg they can substantially improve their lifestyle after retirement. However those dreams of a happy retirement can all be taken away with a diagnosis of cancer or a stroke that inhibits them working for a prolonged period.

You don’t just find yourself financing time off work and medical expenses but also lose out on the employer super contributions and salary sacrifice as well or worse for a small business owner, you face the expense of a getting someone to cover for you to keep the business afloat.

To realistically assess if you need to maintain your Life, Trauma or Income Protection insurance, you need to think through the worst-case scenario. If you were unable to work for 3 years due to an illness today, how would you and your loved ones cope financially?

  • Would you be able to meet ongoing living expenses like food, clothing, changing the car, pay for private health insurance premiums, etc? (this assumes mortgage paid off)
  • Would you have the liquid funds to cover additional expenses or loss in income (e.g., gap in your medical fees, time off work for your spouse to take care of you,
  • What would happen to your retirement plans and would you be able to save enough money to see the kids through the final college years or fund your retirement comfortably?
  • What if you were actually permanently disabled and they had all the costs of rearranging the home, medical care and transport options for you.

In all honesty, it is always a struggle when you lose your earning capacity. The last thing you need compounding the situation are financial concerns. Insurance helps make sure that you and the people you care about will be provided for financially, even if you’re not around to care for them yourself.

So whether you’re in retail, industry or a Self Managed Super Fund, take a moment to consider how insurance might fit into your retirement plans. We can look at ways to reduce the cover and costs to keep them affordable and provide that protection for you and your family.

If you think you may need to review your Insurances then you can contact us to offer you advice on your options. As well as offering advice on Insurances, Superannuation and SMSF’s our advisers can also offer you help in many other area’s you may be experiencing problems such as:

  • Financial Planning,
  • Tax Planning,
  • Debt Consolidation,
  • Investment Portfolios,
  • Estate Planning,
  • SMSF Trustee queries.

Have you found this blog helpful? Pass it on. Social media buttons beneath the article.

Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Self Managed Super Funds must include an Insurance Needs Analysis as part of the fund’s SMSF Investment Strategy.


Amendments to the SIS Regulations in place from August 2012 require trustees of SMSFs by law:

  1.  to consider whether insurance cover should be held by the fund on the lives of the members;
  2. to review that decision as SMSF trustees regularly as part of the review the investment strategy of the fund.

The obligation (which is set out in SIS Reg 4.09(2)(e)) requires the trustees to apply their minds to whether  “for a self managed superannuation fund – whether the trustees of the fund should hold a contract of insurance that provides insurance cover for one or more members of the fund.”

This is a major step up in terms of duties from the old regulations and I believe has been prompted by the June 2010 Super System Review Panel report noting that less than 13% of SMSFs have insurance. Now in reality the major factor to consider is probably that this low figure is a result of most SMSF members being over 55 with higher super balances and low personal debt so the need for any insurance may be negligible.

Insurance protection

Image courtesy of iosphere at FreeDigitalPhotos.net

So what insurance covers are we talking about?  Well it is not simply life insurance, and could include total permanent disability cover and income protection cover that insurers make available via superannuation.

This is not an obligation on the fund to take out each of these insurance covers – the trustees must merely consider the issue.

To prove for the purpose of the annual audit that the trustees have considered the issue, the trustees will have to prepare minutes/resolutions which:

  • acknowledges that the trustees are aware of the obligation to consider insurance cover;
  • shows that the trustees have considered the need for insurance cover for each of the members of the fund;
  • documents that they have implemented cover where possible to meet those needs of the individual members and of the fund itself (in the case of LRBA) or
  • acknowledges that the trustees have determined that insurance is or is not required for a particular member(s)

As is the case with many clients that I take care of the trustees may conclude that no insurance cover is required in respect of a particular member for a variety of reasons such as:

  • when the member has indicated that they have no need for cover as their debts are low and needs are fully funded;
  • the member has sufficient insurance cover in other super funds (we often keep employer or industry funds open to avail of lower group rates);
  • the member has other insurance arrangements outside of the super;
  • that due to illness or injury the cost of premium is too high for the cover provided;
  • when the member has actually been declined for cover due to occupation or pre-existing conditions;
  • that the member does not believe in insurance or is unwilling to pay the cost of the premium.

So how far do you go as a Trustee in documenting your reasons for their decision? Is a full-blown explanation required or a simple statement that they have considered the issue and have come to a set conclusion either way for each member?

Whilst going into detail may sound the correct option to show the trustees have fully discharged their duty, those reasons set down in writing could be questioned later and the process found negligent which may expose the trustees to claims that they have breached their duties.  You may think that an SMSF most often consisting of mum and dad and maybe a few children in a family group like this may be unlikely to end in conflict but potential Beneficiaries of Estates, with the advantage of perfect hindsight, may seek redress to put pressure on trustees to consider their claims.

A possible solution may be for the trustees to discharge their duty by requesting from each member to indicate whether the member wishes to have cover for any or all risks identified in the fund.  If a member said that they do not wish to have or do not need, and will not submit to any underwriting requirements, then the trustees would be in a position to claim that they either have discharged their duty to the member.

As the new requirement has been attached to the investment strategy operating standard of SIS Reg 4.09, it seems that the trustees will also have to reconsider the issue of insurance each time the investment strategy is reviewed and on the occurrence of any significant change to the circumstances of a member or the fund such as a large contribution or withdrawal.

It is time to decide how you will comply with the new rules so please contact us if you need assistance or want to explore your options. Our risk specialists can review existing insurances and provide quotes on a range of covers from suitable insurance companies.

Want to do some preliminary investigations yourself? Why not try this decent Insurance Needs Calculator by clicking here, and then make an appointment to discuss the results with us.

I hope this guidance  has been helpful and please take the time to comment. Feedback always appreciated. Please reblog, retweet, put on your Facebook page etc to make sure Trustees are aware of the changes.

Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Do you want a say in who gets your superannuation if you die? Then put some strategies in place now.


You may have ignored your Super up to now as you feel young , immortal  or just don’t like thinking about death (see I said “if you die” not “when you die”” just so you would continue reading). But in doing so you may not have left your superannuation to the person you intended.

Strict rules govern how your super is distributed when you die – and it’s important to follow those rules to make sure your money goes to whom you want instead of having a faceless Super Fund Trustee or worse an out of date Trust Deed decide.

One of the most important decisions you make when you join a super fund has nothing at all to do with investment. It revolves around the question of whom to nominate as the beneficiaries of your super when you die.

It is a critical decision – because if you don’t get it right your savings could be given to someone other than your preferred beneficiaries or the funds could be held up while disputes are mediated.

Few exceptions

When a fund member dies, subject to the trust deed, his or her superannuation may only be paid to:

  • The member’s spouse (including a de facto spouse, whether same-sex or not)
  • The member’s children
  • A person who was financially dependant on the deceased member at the date of death
  • A person with whom the deceased member had an interdependency relationship at the date of death
  • The member’s legal personal representative (estate)
  • NOTE that none of the above automatically include Mother, Father, Brothers or Sisters.

An interdependency relationship is defined as one between two persons (whether or not related by family) where it is very clear that:

  • They have a close personal relationship; and
  • They live together; and
  • One or each of them provides the other with financial support; and
  • One or each of them provides the other with domestic support and personal care.

For the purposes of that definition, all of the circumstances of the relationship between the persons must be taken into account, including (where relevant):

  • the duration of the relationship; and
  • whether or not a sexual relationship exists; and
  • the ownership, use and acquisition of property; and
  • the degree of mutual commitment to a shared life; and
  • the care and support of children; and
  • the reputation and public aspects of the relationship; and
  • the degree of emotional support; and
  • the extent to which the relationship is one of mere convenience; and
  • any evidence suggesting that the parties intend the relationship to be permanent;

A determination can take into account a statutory declaration signed by one of the persons to the effect that the person is, or (in the case of a statutory declaration made after the end of the relationship) was, in an interdependency relationship with the other person

In the case of a Retail or many Industry fund the beneficiaries you nominate when you join a fund are normally only a guide – the trustees of your fund will have the ultimate discretion as to who will receive your super. They will take into consideration any nomination of beneficiaries that you have made, but are not bound by your request.

The only exception is where your super fund allows you to make a “Binding Death Benefit Nomination” or even better a ” Non-Lapsing Binding Death Benefit Nomination”  . This is a nomination that the trustees are obliged to follow. You may only nominate a spouse, child, someone who you held an interdependency relationship with, or a financial dependant.

If you want your superannuation to pass to someone else, such as a friend or charity, you should consider nominating your estate as the preferred beneficiary of your superannuation entitlements. You superannuation will then be distributed according to the terms of your will – you would need to nominate such people or bodies as beneficiaries of your will.

Regular review

It is important to review death benefit nominations regularly and to include full details of your beneficiaries – including their relationship to you, their full name and their address. This applies even if you have used a Non-Lapsing BDBN as your circusmtances may have changed,

Keeping your super fund trustee informed of any changes to your beneficiaries – or changes to their personal details – will make the task of distributing your super much less complex for all involved.

It’s also worth noting that the basic binding death benefit nominations are only valid for three years – so make sure you update your nomination regularly or ask for a Non-lapsing Binding Death Nomination form.

To be valid, a binding death benefit nomination must be:

  • Made to the trustee in writing, clearly setting out the proportion of benefits to be paid to respective beneficiaries;
  • Be signed by the member in the presence of two witnesses over 18 years of age and who are not themselves named as beneficiaries;
  • Include a signed witness declaration;
  • Received by the trustee; and
  • Renewed every three years, although it is possible and in my opinion preferred to have a non-lapsing binding death benefit nomination.

Who to leave your superannuation to (and how) can be a complex question that can involve tax, social security and other financial considerations. You are well advised to seek professional assistance from a financial planner in this area and if dealing with an SMSF then a SMSF Specialist Advisor™ is the best place to start.

Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

SMSF Specialist Adviser 

 Follow SMSFCoach on Twitter Liam Shorte on Linkedin NextGen Wealth on Facebook   

Verante Financial Planning

Tel: 02 98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

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