Super death benefits

"I see my role if needed as a financial mentor but one who can show warmth, practicality and empathy."
-Katherine Hann
April 19, 2016

Super death benefits

By Katherine Hann

Super death benefits

 

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.