Technical services manager Julie Steed talks to SMS magazine about how some clients may need to consider alternative structures outside of super for the distribution of wealth via their estate plans.
If a death benefit is paid as a pension, the maximum amount that can be used to start the pension is restricted by the transfer balance cap, currently $1.6 million. Amounts above the transfer balance cap must generally leave the super system.
It is essential members with larger super balances and/or insurance review their estate plans to ensure any benefits that may be forced out of the super system are directed to structures that can be controlled, such as testamentary trusts established via a will.
SMS magazine has published an article by Julie Steed , our Senior Technical Services Manager on this topic.