Chairman of SAPEPAA, Grant Abbott looks at why auto-reversionary pensions are the best for family wealth protection for bloodline and assesses the dangers of BDBNs and lump sums.
Key takeaways from the video are:
An important component of estate planning for self-managed superannuation funds (SMSF) is deciding how to distribute the assets of the fund upon the death of a member.
The auto reversionary pension is a preferred option for Grant Abbott from LightYear Training Group as it ensures that family wealth is protected for multiple generations.
Setting up an auto reversionary pensions can be done on the Lightyear Docs platform or through Abbott and Mourley Lawyers.
The first step in setting up an auto reversionary pension is to identify who will receive the pension when the member dies, which is usually the spouse.
When the spouse of the pension member dies, the pension will end under most defined benefit pensions, but it can be passed on to children if they are over 25 and financially dependent on the original pension member.
The pension can also be passed on to grandchildren, brothers or sisters who are financially dependent on the original pension member if they are under the age of 25.
Don't forget to register for the upcoming SAPEPAA half day sessions on 8 February and 26 April from 9am - 12pm which are included as part of your membership fees and have 3 SAPEPAA CPD hours. Great topics and don't forget to save the date on our Phuket conference from 7 - 10 October - invites out next week.