Superannuation is often the most substantial investment for many clients, yet advisers frequently focus on accumulation and pension phases, while estate planning can be overlooked. However, aligning superannuation benefits with estate planning goals is critical for ensuring peace of mind and financial security for clients’ loved ones.
Here are the key estate planning considerations for you and your clients:
Review beneficiary nominations regularly to ensure they reflect your clients' current wishes.
Understand tax implications associated with superannuation benefits and explore strategies to minimise tax liabilities.
Ensure pension payments meet minimum requirements and guide your clients on how superannuation benefits should be distributed as part of their estate.
Importantly, if a client hasn’t completed a death benefit nomination, the fund trustee may exercise discretion over the distribution of benefits, potentially resulting in outcomes that don’t align with your client’s wishes.
Action Items for Advisers:
Encourage your clients to check with their retail super fund whether they have a death benefit nomination and verify its status (binding, non-binding, lapsing, or non-lapsing).
If the nomination is incomplete or has lapsed, assist your clients in updating it with their fund.
Collaborate with an Inherit panel lawyer to ensure your client’s superannuation benefits are passed to beneficiaries in accordance with their testamentary wishes, either directly to a person (e.g. spouse) or through their estate.
Help your clients make proactive estate planning decisions to secure their superannuation for their loved ones.
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