Solutions for blended families

Did you know that one in three marriages ends in divorce?1 It's really no surprise then that the number of blended families in Australia is rising.2

Those who remarry are often keen to ensure their new spouse is well looked after if they die. This is often accompanied by a desire to also leave assets to children from a previous marriage. If you are in this situation, what happens to your assets after you have gone?

A small APRA fund (SAF) solution for blended families offers a way to protect your assets, provide for your surviving spouse and ensure that any remaining capital passes to your children. The Australian Prudential Regulation Authority (APRA) regulates the fund.

How it works?

  1. You transfer your super to a SAF. A SAF is essentially a self-managed super fund (SMSF) with a professional trustee.
  2. When you die, your superannuation death benefit will be paid to your spouse as a pension throughout the remainder of their life. If your spouse dies before you, the arrangement is voided.
  3. When your spouse dies, any remaining capital will be paid as directed by you to your children (or other superannuation death benefit dependants) or to your estate to be distributed as per your Will.

By incorporating a SAF into your estate planning strategy you will have peace of mind knowing that your super will be distributed according to your wishes. To find out more, read our case study and technical flyer.

For more information on estate planning solutions for blended families, please speak to your financial adviser or call our Client Services Team on 1800 254 180.

1. Source: McCrindle Research 2015, ABS Marriages and Divorces, 3310.0, 2014
2. Source: McCrindle Research 2015, ABS Marriages and Divorces, 3310.0, 2014

By having an estate plan in place, you can be sure that your assets will be managed and distributed the way you want and in the most tax-effective manner.

Meet the Estate Planning Team

Peter Hewish

Head of AET Estate Planning

Sydney office

Jennifer Petrovska

Estate Planning Lawyer

Sydney office

Jennifer Wilson

Estate Planning Lawyer

Brisbane office

View all members in our Estate Planning Team.View team