Contrary to popular belief, Australia has an inheritance tax. However, it only applies to superannuation death benefits paid to 'non-tax dependants' and therefore it is not widely known, spoken about or called an inheritance tax. 

To set the record straight, superannuation death benefits paid to a spouse will generally always be tax free. 

However, where superannuation death benefits are paid directly to your adult children, a 15% tax will be applied on the 'taxable' component of your benefits, plus a further 2% tax as a Medicare Levy.

Furthermore, before any tax is paid by your dependants, your super fund itself may need to pay CGT on the disposal or transfer of assets to pay the superannuation death benefit.

Where property is involved, there could even be additional Stamp Duty.

As you can see, the tax paid in the event of your death can quickly add up. 

The good news is, with adequate planning, a significant proportion of these taxes can be legally minimised.

At Ryan's SMSF Compliance we can review your superannuation fund and provide specialist superannuation estate planning advice to help you manage the potential taxes that could be levied on your beneficiaries. 

As an example, for your typical mum and dad SMSF, our advice will cover:

• What will occur when the first member passes away;
• What will occur when the second member passes away;
• Who are the eligible beneficiaries of the superannuation death benefits;
• What are the tax outcomes of the superannuation death benefit being paid to different beneficiaries;
• Who will control the SMSF after the members pass away;
• Do the members have adequate binding death benefit nominations or reversionary beneficiary nominations;
• What steps can be implemented during the life of the members to help minimise the potential taxes paid by beneficiaries;
• How can Capital Gains Taxes be managed efficiently;
• Are there any stamp duty implications to be considered;
• What other steps can be implemented to help manage the passing of the members.

We strongly believe our Superannuation Estate Planning Advice is an invaluable document to both the members of an SMSF and to their ultimate beneficiaries who may be required to step in and help you at later stages in life. 

Here at Ryan's SMSF Compliance we want to help as many SMSF members as possible, and therefore our Superannuation Estate Planning Advice starts from just $2,500.

A drop in the ocean compared to the taxes which you could save your beneficiary.

If you are interested in obtaining advice, contact us below!