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Death Benefit Payment Deed – Reversionary to TBC

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DescriptionSoftcopy *
Death Benefit Payment Deed$2,750 (per SMSF)
* Additional fees for hardcopy documents apply. Click here
Pricing includes GST

Why should I have a Death Benefit Payment Deed?

The transfer balance cap regime can make succession planning tricky. While a member may desire to make their pensions reversionary upon death, 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.

For example if Mary Smith has a $1.7 million account-based pension (ABP) in place and her spouse Barry Smith was to die first, then Mary could commute her ABP to ensure she can receive Barry’s reversionary pension up to the maximum of her available transfer balance account cap space (which we assume is currently nil but her personal transfer balance cap may be $1.7 million if she fully commutes her existing ABP). (Note that the transfer balance cap prior 1 July 2021 (for the period of 1 July 2017 to 30 June 2021) was $1.6 million and from 1 July 2021 a member’s personal TBC may have been subject to proportional indexation.)

DBA Lawyers’ death benefit payment deed addresses this problem by seeking 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.

Premium tailored service

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.

What’s Included

  • Covering letter
  • Death benefit payment deed
  • Trustee resolutions

For more information and related articles

For more information about SMSF succession planning strategies, click on the articles listed below:

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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