Only SMSFs offer sophisticated estate planning

People who choose self-managed want control of their estate planning.

Quality estate planning must factor in superannuation of course and tailored estate planning might require cascading death benefit nominations and other sophisticated drafting that the public offer funds won’t or can’t accommodate. 

Cascading death benefit nominations allow greater flexibility by giving to various beneficiaries in order of either relationship (egg spouse first then kids) or tax concessional status (e.g. minor children first who may pay no tax and only if they can’t take then to older children who may pay some tax on the amount received) or even to mandate certain behavior (e.g. second spouse but only if they pay from the remainder of the estate a certain amount to the children by the first marriage).

It’s likely that some advisers, focusing on these wider estate planning flexibilities, may suggest a client roll overall, or even some, of their super benefits to their own self-managed fund. It is likely to happen more and more, particularly for mid to high net worth clients.