How you structure your will, can make a difference to the tax paid on any death benefits paid from your superannuation. Tax death benefits paid to a spouse or dependent child are exempt under the Income Tax Assessment Act (ITAA). Death benefits paid to other recipients are subject to tax. Where a superannuation death benefit is paid to a deceased’s estate, taxation of the benefit depends upon who is ultimately entitled to receive the funds under the will.
If you require professional legal advice when making your will, so that you fully understand the estate planning tax implications that will apply to your superannuation death benefit, please do not hesitate to call us on 5526 0157.