Reversionary pensions and transfer balance caps

One of the major changes to superannuation from the 2016 Budget was the introduction of transfer balance caps. The new rules require a fundamental shift in how we think about estate planning where there are funds in superannuation, particularly SMSFs.

There are a range of things to review, including:

• whether existing binding death benefit nominations are appropriately worded, or even still desirable;
• reversionary pension arrangements – whether existing ones should remain and whether there are situations where they are now important;
• how control of the SMSF will pass;
• testamentary trusts – whether these should these be considered where amounts will leave the superannuation system on the death of a member;