"I find that it helps to break down the big picture into smaller achievable tasks and to recognise and celebrate these achievements along the way."
-Katherine Hann
Super Death Benefits-who gets your super?
You may not believe it but your super doesn’t automatically become part of your will should you pass away.
You need to tell your super fund who will get your money or they and the courts may decide for you (this will also include any life insurance benefits if applicable).
Of course, there are rules.
1. You can include your super death benefit as part of your estate by completing a binding death benefit nomination in favour of your legal personal representative (LPR). In this way, you will provide for the distribution of your super death benefit in accordance with your will.
2. You can leave your super (as a lump sum) to the following people in your life and they don’t have to pay tax:
• Your spouse or partner
• You child under age 18
• Someone you have an interdependent relationship with (you live together, have a close personal relationship or pay each other’s bills).
3. If you leave your super to your adult children or a tax non-dependant, they will have to pay tax and the amount will depend on the taxable and tax free components of your super (see table below).
|
Age |
Taxable component taxed element |
Max tax rate |
Taxable component untaxed element |
Max tax rate |
|
60 and above |
Non assessable and non-exempt income (NANE) |
0% |
First $1,395 million (untaxed plan cap) |
15% |
|
Balance over $1,395 million |
45% |
|||
|
Preservation age to 59 |
First $195,000 (low rate cap) |
0% |
Frist $195,000 |
15% |
|
Balance over $195,000 |
15% |
$195,000 to $1,395 million |
30% |
|
|
Balance over $1,395 million |
45% |
|||
|
Below Preservation age |
Whole component |
20% |
First $1,395 million |
30% |
|
Balance over $1,395 million |
45% |
If you want to make sure that your super and insurance goes to the right person, contact Katherine Hann on 08 8299 9927 to discuss further.