How is an SMSF in pension mode, taxed on the sole members death?
The Smsf has a large number of Australian listed shares and a few bank accounts.
1,429 views
1,429 views10 replies
10 replies
1,429 views
10 replies
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
First there will be no trustee at my death.
There will need to be someone to act as trustee.
If you have a company as trustee now, then that compny will still be trustee, but your executor can be appointed director.
If you do not have a company as trustee now, then would need to be another individual as trustee now.
This all means that you need to have a will.
the beneficiaries are listed in non lapsing binding nomination form . they are not dependants
Beneficiaries need to be in the class of eligible dependents - perhaps you mean that they are not "tax dependents"
Beneficiaries who are not tax dependents will be taxed on the taxed element of their death benefit - even though the fund benefits are tax free to you now. Tax beneficiaries can receive death benefits tax free.
https://www.ato.gov.au/super/self-managed-super-funds/paying-benefits/death-of-a-member/
Many SMSF members without tax dependents have plans to close down the fund while they are still alive - so that their money can then be distributed tax free via their will.
You need expert advice on all this.
Featured articles
10 Apr 2025 · 4 min read time
8 June 2023 · 2 min read time
28 Aug 2025 · 5 min read time