Making a pension non-reversionary

Overview

This service removes any reversionary nomination for account-based pensions.

There are a number of reasons why a member may want to make their pension non-reversionary including:

• They have separated or divorced their spouse who is currently their nominated beneficiary who will obtain their pension when they die
• They would prefer their death benefit be paid to their estate (ie, legal personal representative) and be dealt with in accordance with their will on their death
• They may no longer have an eligible beneficiary to whom a death benefit can be paid in the form of a reversionary pension, eg, their spouse has already passed away

For more information on some of the key advantages and disadvantages of reverting a pension, click here.

For SMSFs that are currently using DBA Lawyers’ SMSF governing rules and/or pension documents, please note that:

• Our SMSF deed has express powers for the trustee to make a reversionary pension non-reversionary. For more information on our SMSF deed, click here.
• The service does not include a review of estate planning documents including any non-binding or binding death benefit nominations or similar documents. Naturally, it is important for these documents to be consistent with the non-reversionary nature of the pension.

Should you require non-reversionary pension documents for more than one member of an SMSF, please submit a second order form. An additional fee will apply for a second member.

What’s included

• Member request
• Trustee resolutions
• Member notification

Other documents

DBA Lawyers can assist with preparing other relevant documents in respect of the removal of a reversionary nomination of pension including:

• Family Law SuperSplitting
• Change of trustee
• SMSF deed update
• Binding death benefit nomination
• New corporate trustee
• SMSF to SMSF Roll-Over Kit
• Much more –– review the rest of our webpage

For more information and related articles

• What is a reversionary pension?
• Reversionary pensions v. BBDNs: advisers’ risks
• Reversionary pension v BDBN: which one wins?
• Reversionary pension vs BDBN: which outcome is preferred?
• Reconciling inconsistencies between reversionary pension nominations and BDBNs
• Automatically reversionary pensions and super reform

If you are completing a downloadable order form, please email the form to [email protected] when completed.