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SMSF Death Benefits

Discussion in 'Superannuation, SMSF & Personal Insurance' started by derrink, 4th Jul, 2013.

  1. derrink

    derrink New Member

    17th Jan, 2009
    Could someone please advise what happens if one member of a 2 member SMSF passes away. Both over 60 years old; remaining member classed as SIS dependant; the fund is still in accumulation; separate member balances defined within the fund; no death nominations in place; older Trust Deed that doesn't specify. Also who actually facilitates the process and calculations? Does the fund payout have to form part of the will or can it be handled as a separate component of the estate planning.
  2. Terryw

    Terryw Well-Known Member

    9th Jun, 2006
    If the is no provision in the SMSF deed (governing rules) and no nomination in place the trustee of the fund will likely decide. The trustee may be the surviving member or it may be the company. The deceased may have left his shares in the company to someone else and this person could potentially become controller of the company and thereby the SMSF and therefore make the decision.

    Does have to go to the estate, but could go directly to a SIS dependent. This may be good if the will has the potential to be challenged - but note that in NSW super could be still be attacked under the family provision sections of the Succession Act.