Author: adrianb(Enthusiast)Enthusiast 3 Nov 2021I have a Death Cover (A) that comprises my Superannuation Balance (B) plus my Life Insurance through Super (C). I would like to know the tax implications for B and C when my estate is distributed. FYI, I have nominated my Estate as my Binding Beneficiary. My Superannuation Balance (B) has both Tax-Free and Taxable components. I understand that death benefit dependants are not liable to pay tax on the Taxable component of my Superannuation Balance. Question 1: Is my Life Insurance through Super taxable? If so, does the same rule hold whereby death benefit dependants are not liable to pay any tax on any Insurance death benefit distributed to them? I have previously been married, am now divorced and am in a defacto relationship with my current spouse. Question 2: Can both a current spouse and an ex-spouse be death benefit dependants? My current spouse is not an Australian citizen and does not reside in Australia. Question 3: As a non-Australian, will my current spouse still be considered a death benefit dependant and not be required to pay tax on the sum distributed to her? If so, are there any arrangements I can make to ensure that her claim is considered as a death benefit dependant?
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