Anthony Restaino was dealing with clients by the name of Clare and Peter, who were a couple who were also the trustees of their self-managed super fund. Mary had been fighting cancer for three months and succumbed to death. This leaves Peter as the sole beneficiary of Mary’s benefit. Moreover, as Peter was Mary’s husband, he was also the dependent at the time Mary passed away.
Given that Peter has been managing his personal portfolio of investments, he has requested the authorities to pay his wife’s death benefit in three installments rather than a lump sum so as to suit his financial conditions.
Anthony Restainowas his consultant for this matter who guided him according to the Superannuation Industry Regulations. The rules state that death benefits may be received in two installments, which are as an interim payment, and a final one.
This means that Peter cannot request to have the payment in three installments. To fulfill the rules as stated by the SISR, Peter needs to revise his personal investment portfolio and receive the payment in two installments.
Anthony Restainoadvised Peter about death benefit in great detail. He told him that in order to be on the safer side, Peter needs to make himself fully aware of the Superannuation Industry Regulations. Any payments that are made must comply with the rules so that the law is upheld and not breach.
Moreover, in case Peter comes to know that his self-managed super fund has come into contradiction with the rules of death benefit payment, he must speak to Anthony Restaino without any further delay. This is because such matters required immediate attention from the appropriate professional and must be incorporated in the yearly accounts. Moreover, Peter can always consult Anthony Restaino to discuss his options so as to keep discrepancies at bay. By all means, tax laws have to be abided by in order to avoid any penalties.
For more information about lump sum payments, contact Anthony Restaino for Trak Accountants.
