- if superannuation proceeds are paid to a deceased estate, then those proceeds could become exposed to either a claim by creditors or a family maintenance claim
- it is not possible to roll proceeds directly into a beneficiary’s personal superannuation account in order to retain the proceeds within a superannuation environment
- Division 307 of the ITAA 1997 apportions superannuation lump sums or income streams after 1 July 2007. This essentially prohibits a legal personal representative from streaming the tax free elements to a non-dependant and the taxable components to a financial dependant, rather required that the payments are proportionally allocated. It is interesting to note that it would appear that the ATO have not confirmed how they would treat such an arrangement if it was directed by the testator under their Will.
- In the case of a self-managed superannuation fund, it would be normal for the Trust Deed to determine the successor Trustee of the Deceased, and once identified, this Trustee would be responsible for the payment of superannuation death benefits.
The temporary budget repair levy was payable at a rate of 2% for taxable income over $180,000. It applied from 1 July 2014 to 30 June 2017. The levy impacted on some superannuation payments; however tax offsets ensured that the relevant maximum rate of tax is applied.
Feel free to contact our team should you want to discuss this topic further and potentially have clients who may be in this situation.
This publication is not intended to be and should not be used as a substitute for taking taxation advice in any specific situation. The information in this publication may be subject to change as taxation, superannuation and related laws and practices alter frequently and without warning. Neither BNR Partners Pty Ltd, our employees or agents are responsible for any errors or omissions or any actions taken or not taken on the basis of this publication.