We can help you find your Lost Super

It's Easy


Register your details below and we'll contact
you within one business day.

Your Name
Your Email
Phone Number
Your Comments

Book a Skype Chat


Register your details below and we'll contact
you when it suits you.

Your Name
Skype Username
Phone Number
Your Email
Preferred Time
Your Comments

Whats Skype? Learn More

Make an Enquiry


Register your details below and we'll contact
you within one business day.

Your Name
Your Email
Phone Number
Enquiry Type
Preferred Time
Your Message

Book a no-obligation consultation


Register your details below and we'll contact you within one business day to set up your no-obligation consultation.

Register below to receive our FREE email newsletter




Blog

August 6th, 2012
Superannuation death benefits - By Frank McLinden

Most people have the bulk of their personal insurances namely Death and TPD cover within superannuation as this is both tax and cost effective. Apart from having enough cover to meet your needs in the event of your death or permanent disability it is important that we are aware of and are able to direct where the death benefit will be paid. In some cases if the nomination of a beneficiary for a superannuation benefit is not clear the funds
within your super may not reach the intended recipient and may even lead to expensive legal challenges from claimants.

Upon the death of a superannuation member it is the Fund trustee who is required to pay a death benefit as soon as is practical. Who they pay will be dependent on the instructions they have on hand from the member. The trustee is restricted by law (SIS Act) as to who can be paid a superannuation death benefit and these include a spouse, dependant  child or a person who is  financially inter dependent on the deceased individual.

The taxation of a death benefit from superannuation is influenced by who is receiving the payment, the method of payment and the superannuation components within the fund. The super fund will advise the member whether there are taxable components within the super fund at death. Determining if the individuals receiving the benefit pay tax will depend whether they are dependants of the deceased and the method of payment of the benefit.

Total value of superannuation benefits in The value of superannuation assets at the end of 2009 was $1.115 million according to Towers Watson (Sydney Morning Herald Feb 2nd
2010)
and this suggests that for many people it is a valuable asset and the distribution at death is worth planning for. What should you do?

  • Speak to your financial planner about nominating superannuation beneficiaries.
  • Prepare a thorough and detailed Will.
  • Check all your superannuation fund as even a small fund may have substantial insurance benefits attached making it a more substantial asset on death.
  • Beware of the myths surrounding super death benefits eg that a death benefit will be paid to your immediate family in the event of death if there is no other nomination. The laws binding trustees on who can receive benefits are very strict.

Please Note:

This article contains general information only. It does not take into account your objectives, financial situation or needs. Please consider the appropriateness of the information in light of your personal circumstances.


 

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to be notified of new blog posts


 

Book a
Skype chat
Make an
enquiry




Arrange a Skype Chat



Register your Skype details and your
preferred time for a chat. We'll get back to you
as soon as possible.

Your Name
Skype Username
Phone Number
Your Email
Preferred Time
Your Comments
I would like to thank you and PFG staff for a wonderful surprise card and gift card from you for my birthday, it’s just a lovely warm gesture much appreciated!! Thank you all from the bottom of my heart.

Teresa Boscaglia

Accredited by AMP Financial Planning
PFG Financial Services Pty Ltd ABN 23 052 977 189 and PFG Global Pty Ltd ABN 50 679 416 839 trading as PFG Financial Services (Global) are Corporate Authorised Representatives and Credit Representatives of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706. For further details including financial services we can offer you and how we are renumerated, please read the Financial Services & Credit Guide V 4.1 & FPFG Global Pty Ltd Financial Services & Credit Guide V 4.0 General Advice Warning: This website contains general information only. It does not take into account your objectives, financial situation or needs. Please consider the appropriateness of the information in light of your personal circumstances.