You have been accumulating smartly in preparation for your retirement but it is now time to think about what happens when you die. You should start asking yourself, if you haven’t already done this, some simple questions along the lines of: “Where will my super be paid to? Is there any tax on the payment of my super benefits?  Are there any superannuation assets that I would prefer to be paid to certain beneficiaries?"

Some challenging questions I know.

Many people do not realise that superannuation death benefits are not automatically paid or controlled through your will. The benefits are paid in accordance with the super fund trust deed. You may have nominated a beneficiary through a death benefit nomination. Alternatively when your legal personal representative has been appointed by the court they can take control of your super.

Furthermore it is a shock to learn that on death up to 16.5% of your super wealth may be taken by the tax man for super benefits paid to non dependants. This is an area where planning can reduce the incidence of tax.

The message here is to take action to put an estate plan in place to plan for the equitable distribution of your superannuation wealth.

For more information talk to Terry Dewing on 9526 1211 or email Terry.