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Death Benefit Payment Deed – Reversionary to TBC

DescriptionSoftcopy *
Death Benefit Payment Deed$1,760 (per SMSF)
* Add $75 for hardcopy

What’s in our package:

  • letter
  • death benefit payment deed
  • resolutions

Why should I have a Death Benefit Payment Deed?

The transfer balance cap regime can make succession planning tricky. A member may desire to make their pensions reversionary upon death. However, there may be situations where receiving these reversionary pensions would cause the beneficiary to exceed their transfer balance cap. Consequently, this may cause hassle for the beneficiary and SMSF trustee as certain pensions will need to be commuted to adjust to the transfer balance cap.

Furthermore, in LCR 2017/3 the ATO appear to be of the view that a binding death benefit nomination (‘BDBN’) by itself would not make a superannuation income stream reversionary. This means that, broadly, if a member’s pension was not reversionary at commencement, they may not be able to subsequently use a BDBN, by itself, to make their pensions reversionary. That being said, we remain confident that DBA BDBNs in conjunction with DBA governing rules are still effective in making pensions reversionary.

DBA Lawyers’ death benefit payment deed addresses these problems. Our death benefit payment deed seeks to ensure that upon death, any account-based pensions being paid automatically reverts to an eligible beneficiary up to the maximum amount based on that beneficiary’s transfer balance account. The member can then select between two options as to whether they want the balance to go as a lump sum either to:

  • their nominated beneficiary; or
  • their estate.

Please note that our death benefit payment deed can only work in conjunction with DBA’s SMSF governing rules.

We also offer a premium service for those wanting a more tailored death benefit payment deed prepared by an expert SMSF lawyer having regard to your particular background circumstances.

We can provide an estimate in respect of completing your death benefit payment deed once we have your instructions and background details, including a copy of your current SMSF deed and will.

For further information about SMSF succession planning strategies, please refer to the following article:

Any information provided on this website (including any blog posts) are mere summaries and general information provided for educational purposes only. This is no substitute for expert advice. Anyone seeking to rely on this content should obtain expert advice to confirm particular issues especially as the law is subject to ongoing changes and substantial penalties can be imposed.

As a law firm DBA Lawyers Pty Ltd is not licensed to give financial product advice under the Corporations Act 2001 (Cth).

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