A Self-Managed Super Fund and Death Benefit Nominations

A Self-Managed Super Fund and Death Benefit Nominations

 What Are They?

  • A self-managed super fund is a special type of trust that is set up specifically for saving for your retirement that complies with the superannuation laws.

  • A death benefit nomination is a document you can sign under the rules of your SMSF forcing the trustee of the SMSF to pay your superannuation assets on your death as you wish. Nominations can be binding or non-binding, and lapsing or non-lapsing.

 What are the Elements of a Self-Managed Super Fund?

  • A Trustee or Trustees - are the individual or individuals (which generally must be the members of the fund) or a private company (whose shareholders and directors generally must be members of the super fund) that manage the fund.

  • A Super Fund Deed - is the document which (together with the superannuation legislation) provides the rules by which your super fund will operate.

  • The Super Fund’s Assets - is the money and other property which are transferred into the fund by the members and held and invested by the trustee.

  • A Written Investment Strategy - is the document which outlines the types of investments that can be made with the super fund assets.

  • Members of the fund - are you and your family members who transfer assets into the fund where they are recorded in the respective members’ accounts.

  • The fund should have an accountant and financial advisor.

  • The fund must be registered with the Australian Taxation Office.

  • Death Benefit Nominations - are documents in which you can remove the super fund trustee’s discretion as to who is to receive your super fund assets when you die by specifying exactly to whom they are to be paid and in what amounts.

 Why Would I Want It?

  • An SMSF could provide you with a very tax effective way of saving for your retirement.

  • An SMSF may give you a way of leaving a very tax effective pension for your spouse or financial dependents when you die.

  • An SMSF allows you to manage your own superannuation assets or obtain the advice from your own preferred experts as to how those assets should be managed.

  • An SMSF may deliver savings in the costs of management and compliance.

  • An SMSF is on of many tools for you to use in your estate plan, particularly when you make non-lapsing, binding death benefit nominations.