The increasing focus on estate planning as one of the benefits of a self-managed super fund (SMSF) is contributing to the popularity of SMSFs broadly, according to Peter Burgess, head of policy and technical at AMP SMSF.
There are certain estate-planning strategies SMSFs offer that are not necessarily available in other types of funds, Mr Burgess said, including death benefit nominations such as cascading nominations.
“You can be much more detailed, you can talk about specific assets that you can link to various members of the funds, and you can be very specific,” Mr Burgess said.
“In an SMSF... you can talk about what form that benefit should take, so whether it should be a lump-sum, pension and so forth,” he added.
Mr Burgess added with blended families becoming more common, there’s a focus on making sure that clients’ super assets get paid to their preferred party.
“SMSFs can provide that level of certainty that you can’t necessarily achieve in other types of super funds,” said Mr Burgess. “Practitioners are looking at things like SMSFs, not just for the control aspects and the investment flexibility but also the estate planning flexibility that these vehicles provide.”
Mr Burgess also stressed the importance of binding nominations and said there is a risk of not meeting the wishes of the deceased if it’s not clear that a binding nomination is in place.
“If you want certainty as to where your money is going to go on death, then [make] sure that you’ve got that binding nomination in place,” he said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2017Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
23 Jun 2017SMSF practitioners told to reassure clients in 30 June lead upBy Miranda Brownlee
23 Jun 2017SMSFs warned on 30 June cut off for electronic transfersBy Staff Reporter
22 Jun 2017Westpac veteran and SMSF exec set to departBy Staff Reporter
22 Jun 2017ATO sets compliance targets for auditors in 2017-18By Miranda Brownlee
22 Jun 2017CGT relief still plaguing trustees, says former ATO execBy Miranda Brownlee
- view all
Trustees reminded of ‘positive’ CGT news as EOFY looms
A capital gains tax (CGT) issue that was causing confusion in the industry has been cleared up by the ATO, and professionals are being remin...read more
SMSF practitioners told to reassure clients in 30 June lead up
With the focus predominantly on super members with above $1.6 million, it may be worth practitioners informing clients unaffected by the ref...read more
SMSFs warned on 30 June cut off for electronic transfers
With a significant portion of Australians missing the 30 June cut off last year when making non-concessional contributions, Colonial First S...read more
- view all