Your Superannuation – It’s all about your life…. or is it?
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Because your Superannuation is your nest egg, some of it will still be there when you die.
The last two decades in Australia have seen a monumental change in the role of Superannuation for most Australians. Public education in the need for us to provide for self retirement and compulsory employer Superannuation levies have contributed greatly to this massive change. ATO statistics show that in 2015 there were some 560,000 Self-Managed Superannuation Funds involving more than a million members. The number of members in Industry and Retail Superannuation Funds has grown hugely over the last 20 years. Increasingly the wealth of individuals in later years resides in their Superannuation member benefits and entitlements.
Unfortunately the speed of change has not brought with it an education to most ordinary Australians as to how they should best manage their Superannuation wealth and particularly how they should effectively plan to pass these assets on to family members when they die.
The fragmentation of the Superannuation Funds into Retail, Industry and Self-Managed sectors each with their individual characteristics and interests have contributed to the difficulty in presenting a broad and clear understanding across the community.
Though Superannuation is primarily designed to provide for an individual’s post working life, it is an inescapable fact that consequently significant unused funds will be owned in Superannuation by many people when they die.
There is a mistaken belief that the assets which people own in their Superannuation will automatically form part of their Estate when they die. This is simply not correct and any wealth or member benefits that you may have in Superannuation at the time of your death may never form part of your Estate and may not become subject to the provisions of your Will. It is therefore essential that you make plans and ensure that your Superannuation entitlements at the time you die – death benefits – are received by the family members or persons that you would want them to go to. This is your choice and right to do so but it shall require action on your part in order to achieve that result.
Contact MMLaw today to arrange an appointment to discuss your estate planning needs.
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The content published in this Blog is in the form of academic papers and the opinions expressed herein are generalised. The information provided is for educational purposes, not specific legal advice.
The application of any principles referred to can alter from case to case and accordingly you should seek independent legal advice in respect of your individual circumstances.