Tax Planning Strategy 180 | Superannuation Proceeds Trust
Tax planning strategy 180
The superannuation proceeds trust strategy involves creating a special type of testamentary trust under a will that is only funded by the deceased’s superannuation death benefits. The beneficiaries are limited to only the deceased’s tax dependents (i.e. spouse and children under 18).
The advantage of this strategy is that as all the superannuation death benefits will be going to tax dependents of the deceased they will be tax-free.
Specialist legal advice is required to draft the will that will establish the superannuation proceeds trust.
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