Superannuation Death Benefits: Who Gets My Super When I Die?

[@HakatimeRugby]

Thanks for the vid. I'm looking forward to the video on how this is taxed when given to a beneficiary, took a quick look on the ato website and got lost haha. I mean Super is definitely a great tax effective way for building/investing and creating an income stream in retirement, but if you die before retirement and the proceeds are heavily taxed when being received by your dependents thats another element of risk to consider. But as above, im not entirely sure how the tax side works so looking forward to your follow up vid. Thanks again

[@SuperGuyAu]

You're welcome! In the meantime, this article will help superguy.com.au/superannuation/tax-on-super-death-benefits/ Death benefits tax is only paid by non-tax dependants and only on a particular portion of your super - and there's ways to manage this. Plus, DBT is only essentially tax that you didn't have to pay while you were alive. Better yet, if you can withdraw your super just before you die (which isn't always possible) you get the full benefits of super, without your beneficiaries being hit with death benefits tax. p.s. I won't be offended that you looked on the ATO site before mine 😜

[@Ted...youtubee]

I'm retired. Have 2 accounts. Account 1. Streaming pension account with my wife as reversionary benefit. I totally forgot about my setup. But account 2 is accumulation account with a binding nomination. For some (senior) reason I had assumed RB is automatically applied to account 2 being linked to account 1 by virtue of my name. Did I get this right?

[@ptvjenx123]

Hi Super Guy, a question that does not appear to have been dealt with anywhere. If a husband or wife dies and has a binding death benefit in place how does the super balance actually transfer to their partner? Does the balance stay in the Super account and account ownership transfers or does the Super provider cash out the account? I’m sure you’ll see the significant implications that exist between these two options, perhaps it’s neither and dealt with differently? What impact now that we have the $3M threshold. If both parties had $2M balances and one dies then does the super balance become $4M and subject to the 30% tax? Hope that all makes sense, maybe good content for a new utube. Regards.

[@SuperGuyAu]

In most cases, the balance is paid out in full as a lump sum to the super beneficiary's personal bank account (e.g. spouse). However, it can also be paid as a pension, depending on the rules of the specific super fund, the death/reversionary nominations in place, and the preference of the surviving spouse. The $3M threshold rule will not apply until 2025/26, if enacted.

[@antelopeslr5000]

So… I’m a single guy, no spouse or defacto, no children and I’m not in an interdependency relationship with my parents (or anyone for that matter). No one really fits the bill of a Superannuation Dependant. I’m not sure what will happen to my Super when I pass away, or if anyone will inherit my Super. So I can’t leave it to siblings, nieces, close friends???

[@SuperGuyAu]

Your super cannot be paid directly to a sibling, nieces or close friend, but can be paid to your estate and distributed via our Will. You might consider nominating your estate or legal personal representative as the beneficiary of your super. You should discuss this with an estate planning specialist.

[@knowledgehub7641]

Please tell me how and where do I need to claim my husband death super fund?

[@SuperGuyAu]

I'm sorry for your loss. You will need to contact your husband's superannuation fund and ask them for the process involved in distributing his superannuation balance.

[@mariab4720]

But isn’t that you can withdraw your super if you’ve been told by your Doctor that you’re terminal?

[@mehakpreetsingh6423]

Can we nominate our parents?

[@SuperGuyAu]

Generally not, unless they are considered to have an interdependency relationship with you at the time of your death. Read more here about the definition of dependent www.ato.gov.au/super/apra-regulated-funds/paying-benefits/paying-superannuation-death-benefits/#Dependants1 ... Alternatively, you may be able to nominate your estate as the beneficiary and then have the proceeds distributed via your Will (along with your personal assets). Always seek specialist estate planning advice relating to this.