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

Roberts & Morrow turns 70!

25th November 2021

On 1 September 1951, Don Roberts and Keith Crichton took over as principals of a small local Armidale Firm... Read More

Up and coming super changes

25th November 2021

Recently, several significant super changes have been introduced into Parliament as a part of the government’s plan to enhance... Read More

All Company Directors to apply for a Director ID

24th November 2021

All Company Directors will need to have a Director ID, which is a unique identifier that is kept forever,... Read More

Christmas closure dates 2021-2022

24th November 2021

All Roberts & Morrow offices will be closed from close of business 23 December 2021, reopening as normal 10... Read More