Death benefit payments levied on recipient

by

Ed.

From www.smsfadviser.com: A death benefit payment is levied on the recipient, not the fund, but the fund must withhold taxes if the payment goes to an individual.

Assets continue to support pension liabilities until a death benefit is paid and warns against in-specie transactions due to tax implications.

It often may be more advantageous to distribute benefits to an estate rather than directly to individuals to avoid excessive taxation.

Filed under: Superannuation, Tax - Individuals