Superannuation Proceeds Trusts

Superannuation Proceeds Trusts Lawyers Sydney

Death and taxes go together like peaches and cream. However they do not have to be experienced at the same time. A superannuation proceeds trust can ensure that the two are separated by up to 80 years. Tax delayed is tax saved. That’s why we assist our clients by drafting a super proceeds trust when they are suitable.

The problem with preparing a binding death benefit nomination by which you give your dependent children an account-based superannuation pension, is that the children must cash in the asset at the latest, when they reach 25 years. However, the prospect of a child managing a financial windfall at that age can be a concern for some clients. A viable alternative to such a strategy is having a super proceeds trust.

These are typically set up in your will. A super proceeds trust is funded by superannuation death benefits and starts when its trustee receives superannuation death benefits from the executor of the decease estate.

We can ensure that the beneficiaries of the super proceeds trust include only those by which the superannuation tax concessions can be retained. This is limited to people who were tax dependents of the deceased at the date of their death, that is, their spouse, their minor children, someone with whom the deceased had an interdependency relationship or someone who was financially dependent on the deceased. To protect the integrity of the super proceeds trust, we can explore with you other ways that other beneficiaries can be included in the will by having them inherit other assets.

Our staff advise our clients on the benefits of using a super proceeds trust. We can assist by ensuring that the advantages are available to our clients’ beneficiaries. Those advantages include the fact that minor beneficiaries are taxed at ordinary adult rates, rather than at penalty child rates. Another advantage which we can make available to our clients is that there are tax efficiencies. For example, that there is no additional tax payable when the super proceeds are paid to the super proceeds trust.

We also assist our clients by informing them of the benefit of having a super proceeds trust whose trustee has wide powers and whose identity is not limited to family members – it can be a professional advisor or another person known to our client. We can help our clients by ensuring that the super proceeds trust keeps going for up to 80 years (unlimited in South Australia).

Leigh Adams Lawyers can assist in getting the super proceeds trust going as soon as practicable.

Asset protection issues can be availed of in a super proceeds trust and we assist our clients by telling them how. If our client does not have a tax dependent when they come as see us, we can discuss the issue. A super proceeds trust is a good form of protection against adverse events occurring in the future. Sometimes, adverse events like illness and injury can mean that even an adult child becomes financially dependent or enters into an interdependency relationship with their parent in the future.

If you have anything that you wish to discuss, then please call us on 02 99640022 and ask for Leigh.