Self-managed superannuation funds (SMSFs) and estate planning offer great benefits for those looking to secure the financial future of both themselves and their dependents.
SMSFs allow you to control your own superannuation, to ensure that your superannuation is used in your best interest. They provide the opportunity for you to control where and how your superannuation is invested, how it is used for retirement and who it goes to on your death – subject to some legislated restrictions. By controlling your own investments, you can make sure that your retirement savings are going towards investments that will best benefit you.
Estate planning is a process by which you consider your structures, assets, liabilities and beneficiaries and how best to pass the desired items onto the preferred recipient.
As your superannuation does not form part of your estate (outside NSW), ie: it is not covered by your will, estate planning within an SMSF is important to ensure your balance is passed on to the right person, in the most tax-effective way. It also ensures your desired outcome is achieved, rather than that of whoever gains control on your death.
Coupling estate planning with an SMSF means that you can ensure that your loved ones receive the funds that you want them to receive, and that your superannuation is used in the most tax-effective way possible during your lifetime.
