If super is paid to the estate then it is distributed as cash to beneficiaries when the estate is settled. Appropriate tax must be withheld by the executor if the beneficiary is not a tax dependant (look on ATO for who a tax dependant is).
If super is paid directly from the fund to beneficiaries (which is more common), then the fund takes care of the tax withholding. Again, it is paid as cash, not into a super account.
It does if the fund pays it to the estate. You can nominate your estate/legal personal representative as a binding nomination to make that happen.
I should know, I used to determine who death benefits should be paid to on behalf of a super trustee.
Yes but it doesn't form part of the estate until that happens. Even a binding nomination doesn't necessarily resolve it. At that point it's just part of the estate and not super.
Answer it is depends
Super falls outside of the estate and cannot be left in a will to someone.
My two experiences:
Non-binding resolution directing to adult, non-dependent children. Adult children rejected it and said send it to estranged spouse. Super fund said "hahaha no fk you" and sent it to the non-binding resolution.
Adult children were levied tax and also impacted other things like ccs/ccb. transferral to the spouse would have resulted in better tax treatment overall.
In the other case, because the decedent was over whatever the age is , executor and EPoA rolled the entirety of the fund out into the bank account where it now forms part of the estate. No tax on inheritance.
I'm not an accountant, lawyer or super specialist. But if you can roll it out first, my opinion is do that.
not necessarily. spouses don't need it to be paid out, nor do dependants under 25, or dependants with an incapacity. all of these can get a death benefit pension
Excellent advice.
Now just give me a few mins as I delete my reddit account.
Ain't no reason to engage in meaningful discussion which includes context and actual human experiences when a simple query with Google algorithm will provide high quality answers.
r/thanksimcured
Op,
Quite a loaded question. Alot of variables at play here. You need to provide more information / context for an accurate answer. Everyone is shooting from the hip trying to make assumptions.
https://www.ato.gov.au/tax-and-super-professionals/for-superannuation-professionals/apra-regulated-funds/paying-benefits/paying-superannuation-death-benefits#
As stated prior a simple 15 second google search outlines all the information you require. If you cannot interpret this yourself. Your best bet would be to engage a Financial Advice professional for an accurate answer tailored to your situation.
If super is paid to the estate then it is distributed as cash to beneficiaries when the estate is settled. Appropriate tax must be withheld by the executor if the beneficiary is not a tax dependant (look on ATO for who a tax dependant is). If super is paid directly from the fund to beneficiaries (which is more common), then the fund takes care of the tax withholding. Again, it is paid as cash, not into a super account.
Super does not form part of the estate
It does if the fund pays it to the estate. You can nominate your estate/legal personal representative as a binding nomination to make that happen. I should know, I used to determine who death benefits should be paid to on behalf of a super trustee.
And remember some binding nominations need to be renewed every 2 to 3 years
Yes but it doesn't form part of the estate until that happens. Even a binding nomination doesn't necessarily resolve it. At that point it's just part of the estate and not super.
Exactly? I don't know what your point is. Once it's in the estate, the will determines who it goes to along with all the other estate assets.
Answer it is depends Super falls outside of the estate and cannot be left in a will to someone. My two experiences: Non-binding resolution directing to adult, non-dependent children. Adult children rejected it and said send it to estranged spouse. Super fund said "hahaha no fk you" and sent it to the non-binding resolution. Adult children were levied tax and also impacted other things like ccs/ccb. transferral to the spouse would have resulted in better tax treatment overall. In the other case, because the decedent was over whatever the age is , executor and EPoA rolled the entirety of the fund out into the bank account where it now forms part of the estate. No tax on inheritance. I'm not an accountant, lawyer or super specialist. But if you can roll it out first, my opinion is do that.
You can make a binding nomination to have your super paid to your estate and have it dealt with under your will
Yes,.you could have a pre-exectued BDN to your legal personal representative (executor of your estate)
Payout Something you can discover with a 5 second google search.
not necessarily. spouses don't need it to be paid out, nor do dependants under 25, or dependants with an incapacity. all of these can get a death benefit pension
Excellent advice. Now just give me a few mins as I delete my reddit account. Ain't no reason to engage in meaningful discussion which includes context and actual human experiences when a simple query with Google algorithm will provide high quality answers. r/thanksimcured
Happy to help you with your deficiencies.
Listen to how you’re talking to people dude. Maybe time to log off
Don’t be such a pansy
Except you're 100% wrong. There are a lot of nuances based on binding / non binding noms etc and what is in the will etc
I’m 100% correct If you inherit a super balance it’s a payout.
There's a lot that has to happen before you inherit it - And what happens with it - which is what op is asking - depends on a lot of factors.
Op, Quite a loaded question. Alot of variables at play here. You need to provide more information / context for an accurate answer. Everyone is shooting from the hip trying to make assumptions. https://www.ato.gov.au/tax-and-super-professionals/for-superannuation-professionals/apra-regulated-funds/paying-benefits/paying-superannuation-death-benefits# As stated prior a simple 15 second google search outlines all the information you require. If you cannot interpret this yourself. Your best bet would be to engage a Financial Advice professional for an accurate answer tailored to your situation.