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SMSF succession planning — who receives the benefits and who gains control?

In this episode of the DBA Lawyers Podcast, Bryce Figot, Special Counsel and William Fettes, Senior Associate discuss SMSF succession planning and some practical tips and traps.

SMSF succession planning is a critical component of each member’s SMSF strategy and is often overlooked. The two key questions to ask when formulating an SMSF succession plan is where a member’s death benefit should be paid and who should control the fund in the event of loss of capacity or death.

Bryce and William address some common misunderstandings with SMSF succession planning such as whether the deceased person’s will can direct the payment of their superannuation death benefit and discuss what happens if the member dies without a binding death benefit nomination (‘BDBN’).

Bryce and William also discuss the issue of control of an SMSF when a member dies and how succession to control works and who can then run the fund.

Finally, Bryce and William also discuss who can decide the validity of a BDBN and common issues that may arise if the person running an SMSF after a member’s death (commonly the surviving spouse) is also the executor of the deceased member’s will and is placed in a position of conflict.

William Fettes is hosting an SMSF Succession Planning Webinar on Wednesday, 18 November 2020 covering this topic in more detail. To register please click here. A recording to this live webinar is also available after 18 November 2020.

For a chance to have your SMSF query addressed on the show, please send your questions to [email protected].

Related articles and links below.

Appeal handed down in Wareham v Marsella

DBA Lawyers — the best BDBN is now even better — COVID-19

SMSF succession strategies

Reversionary pensions v BDBNs: advisers’ risks

SMSF succession planning

The legal minefield of BDBNs (updated)

DBA Network

DBA Lawyers

Hosts (in order of appearance): Zacharia Galloway, Lawyer, Bryce Figot, Special Counsel and William Fettes, Senior Associate

30 October 2020