The following checklist provides some common examples of when to seek advice and review your documentation from an estate planning perspective due to the superannuation changes (due to come into effect from July 2017):
I have over $1.6 million in superannuation. The changes mean any excess above $1.6 million will need to be cashed out on your death. Where do you want this excess be paid? Your binding death benefit nominations (BDBNs) and Wills may have to be updated.
I had planned for my super to stay in my fund and revert to my current partner (and I have children from an earlier relationship). Depending on how much you have in super the super may have to be cashed out on your death. You will need to consider where the death benefits will go on your death and update your Will and death benefit nominations. M y superannuation fund holds a significant asset such as a property. The changes requiring the payment of a lump sum may force the sale of this asset, but certain strategies can avoid this. I have changed my superannuation fund. It is necessary to consider your superannuation strategy including who you want to benefit from your member balance on your death. I have not signed a BDBN (or a non-binding nomination). Superannuation does not form part of your estate. A properly drafted BDBN will ensure that your intentions are achieved, and can avoid disputes regarding your superannuation. My BDBN is over three years old. Some superannuation funds provide that after three years, your BDBN expires, so you will need to review your estate plan and consider signing a new BDBN, or update your SMSF deed to allow for your BDBN to continue to be valid beyond three years. I have a BDBN and a SMSF but have not considered who will be the trustee (where there are individual trustees) or director and shareholder (where there is a corporate trustee) on death. Cases have shown that this must be carefully considered to avoid disputes. I have not updated my SMSF deed this year. The changes mean it should be updated to comply with the new 2017 legislation and best practice following the changes.
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Emma Woolley Partner T +61 3 9603 3551 firstname.lastname@example.org
James Whiley Special Counsel T +61 2 8267 3275 email@example.com
Sam Baring Lawyer T +61 3 9603 3150 firstname.lastname@example.org
Eileen Meehan Special Counsel T +61 2 8267 3276 email@example.com
William Moore Special Counsel T +61 3 9603 3167 firstname.lastname@example.org
Juliet O'Brien Lawyer T +61 3 9603 3542 email@example.com