Life Begins At.....
Issue link: http://ebook.aprs.com.au/i/54730
Superannuation estate planning: Defining a dependant PAYMENT OF SUPERANNUATION DEATH BENEFITS CHANGED FROM 1 JULY 2007, FOLLOWING THE INTRODUCTION OF 'BETTER SUPER' LEGISLATION. DIFFERENT RULES APPLY TO THE PAYMENT OF A SUPERANNUATION DEATH BENEFIT TO A PERSON THAT IS A DEPENDANT OF THE DECEASED PERSON FOR TAX PURPOSES COMPARED TO A PERSON THAT IS NOT A DEPENDANT OF THE DECEASED FOR TAX PURPOSES. TERRI LOY EXPLAINS FURTHER. History of Change 30 June 2004 definition of dependant expanded to include 'interdependency' relationships. 1 July 2007 only dependants defined under tax law (ITAA 1997) could receive death benefit pensions. 1 July 2008 definition of 'spouse' expanded to include same sex and de facto couples. Lump Sum Payments vs Pension Payments Ensuring the nature of a beneficiary's dependency is crucial in determining how they can receive superannuation benefits. Are they dependants under both tax and super law (e.g. a spouse), or are they dependants under super law only (e.g. adult children)? 108 www.theretiree.com.au The following table summarises how death benefit payments from superannuation can be paid to dependants. There are restrictions on the type of payment that can be paid if the intended beneficiary is not a 'tax law' dependant, regardless of whether they are a 'super law' dependant. FINANCIAL MATTERS