A Self-Managed Super Fund (SMSF) gives you control over your retirement savings — but have you considered what happens to it after you’re gone?
It’s an important question that many Australians overlook. Ensuring your SMSF continues to operate smoothly and your wealth is distributed according to your wishes requires the right structure, planning, and professional advice.
At Palladium Financial Group, we help Perth trustees and families understand their responsibilities and ensure their SMSF stays compliant even during challenging times.
What Happens to an SMSF After Death?
When a member of an SMSF passes away, the fund doesn’t simply close. It remains active until all death benefits are paid out.
The exact process depends on:
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Whether the deceased was the only member or part of a multi-member fund, and
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What type of trustee structure is in place — individual or corporate.
The remaining trustees must ensure the fund continues to meet SMSF compliance requirements while managing the payment of benefits as outlined in the fund’s trust deed.
This is a delicate process that often benefits from professional support from a reliable SMSF accountant Perth or Accounting Firm in Perth.
Trustee Responsibilities After a Member’s Death
Once a member dies, the trustees (or company directors, if there’s a corporate trustee) have several critical duties, including:
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Notifying the ATO of the death
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Reviewing the trust deed and death benefit nominations
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Paying out benefits to the correct beneficiaries
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Maintaining compliance and accurate tax reporting
If the deceased was the sole trustee, the fund will need to be restructured or wound up. At this point, professional help is vital — an expert from Palladium Financial Group can guide you through legal and tax-related steps to keep the fund compliant.
Death Benefits and Tax Implications
The death benefit from an SMSF can be paid as a lump sum or as a pension to dependants.
Spouses and financial dependants often receive these benefits tax-free, while payments to non-dependants may attract tax, depending on the composition of the fund.
Getting advice from an SMSF specialist in tax accounting Perth ensures you make tax-efficient choices and avoid costly errors.
The Role of SMSF Estate Planning
Your SMSF estate planning strategy determines who inherits your super, and how easily that transition occurs.
An effective plan should include:
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A current and valid trust deed
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Clear binding death benefit nominations (BDBN)
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A well-documented succession plan
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Regular reviews for compliance
Without this, trustees and beneficiaries may face confusion, delays, or even disputes.
The professional accounting services offered by Palladium Financial Group include estate planning guidance to help you protect your legacy and maintain peace of mind for your family.
Choosing the Right Trustee Structure
Your trustee structure plays a major role in how smoothly your SMSF operates after death:
1. Individual Trustees
When one trustee dies, the fund must appoint a new trustee quickly to remain compliant.
2. Corporate Trustee
A corporate trustee structure provides stability — when one director passes away, the company continues, and a new director can step in easily.
For this reason, many trustees opt for a corporate structure during SMSF setup Perth, as it offers flexibility and long-term security.
Why Professional Help Matters
Dealing with an SMSF after a member’s death involves navigating tax laws, super regulations, and estate rules — all at once.
That’s why many trustees choose to work with a trusted Accounting Firm in Perth like Palladium Financial Group.
Their team of SMSF accountants Perth provide ongoing support in:
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Death benefit administration
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SMSF compliance and auditing
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Tax accounting and reporting
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Estate planning and trustee succession
Having an expert manage these complexities allows you to focus on your family and future.
Safeguard Your SMSF Legacy Today
Your Self-Managed Super Fund is one of your most valuable assets — but without careful planning, your legacy could be at risk.
Get guidance from the SMSF specialists at Palladium Financial Group. Their experienced team offers tailored SMSF services, from setup and compliance to smsf estate planning and tax advice.
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