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Australian Lawyers and Consultants

Planning for Super Payouts on Death

September 2002

Careful planning is required for one’s superannuation fund entitlements payable on death. Who will the benefits be paid to? What are the tax implications? How best can one effect one’s preferences? Baldwins can provide a range of estate planning solutions.

Although superannuation legislation now prescribes a “Binding Death Nomination”, many trust deeds do not offer this option (some of the larger funds claim the administrative costs are too burdensome). Yet, in any case the law says the document is valid only for 3 years, so that its purpose can be defeated by forgetfulness after 3 years.

There are alternative ways to achieve one’s objectives, taking account of different components of the death benefit and alternatives for the form the benefit may take, with different tax and cash flow implications. Family relationships also have a bearing on the disposition of the death benefits.

Baldwins can provide more specific professional advice as well as in the wider context of estate and succession planning covering also family companies and trusts.

For further information, contact Joe Lederman at BALDWINS, Australian Lawyers & Consultants.

Return to the Superannuation Law Archive or Australian Tax Law Archive.