The way SMSF balances are distributed upon the death of a member are increasingly important
Who the beneficiary is of an SMSF balance when a member dies is very different from where someone’s money CAN go within the traditional means of a Will.
A largely held misconception is that your Will can deal directly with your superannuation assets. Many clients are surprised to learn this is not the case.
The truth is, without properly thought out and documented estate planning within your super fund that is linked to the provisions of your Will, there is a real risk your super benefits will not be distributed according to your wishes.
Bryce Figot from DBA Lawyers says:
“The money held in an SMSF often feels to a member that it belongs to them. However, if they die or become incapacitated, their hold on their SMSF fund’s assets isn’t always as strong as they thought.”
A will made by the deceased member directing where their SMSF money goes will count for nothing unless the member/trustee brings certainty to who is going to be in control of the SMSF to execute the wishes of the member.