SMSF Estate Planning – Binding, Discretionary or Hard-Wired

With over $822 billion of assets held in Australian SMSFs, there’s no surprise we’re seeing a sharp increase in contested SMSF death benefit payments. For most, having control is why they set up an SMSF, the super tax concessions have led them to building up their SMSF wealth and now their SMSF is their second biggest asset behind the family home. But what has been put in place for their death?

Although the traditional binding death benefit nomination (BDBN) has been touted by some as the only estate planning option for SMSF clients, does this really achieve the best client outcome? Perhaps greater flexibility would be advantageous for an otherwise harmonious family in maximising taxation and asset protection outcomes, or alternatively, taking a more restrictive and irrevocable path will provide greater certainty and protection for more complex family scenarios.

In this presentation Elizabeth Burnheim, Senior Associate, along with Tracey Kumar will look at the competing options for members’ wishes in their SMSFs, is there a ‘best’ option and at what point do we consider over the other.