Keep pension account intact after death

by

Ed.

From www.smsfadviser.com: After the death of a pensioner with an SMSF, the pension account should be kept intact, as advised by Annie Dawson, a senior SMSF technical specialist.

She highlights that while super rules might suggest rolling the account balance into an accumulation account, maintaining the pension account is essential for tax purposes, as it ensures ongoing ECPI until death benefits are cashed.

This practice also prevents overstating the fund’s tax liability and complies with superannuation law requiring timely cashing of death benefits.

Filed under: Superannuation, Tax - Individuals

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