query re purchasing property in super with tpd funds.

If a person has early access to Super as a result of TPD, does that change the way that property can be purchased and dealt with in Super, Normally a person can't live in/transfer property if purchased within superfund, however what if a smsf has early access(TPD), does that change the way the property can be purchased and lived in etc,

thanks

 

If the money is removed from super it is no longer super

 

You need good structuring advice. @Terry_w is a wiz at this, why not give him a call?

 

thanks Terry but all the money still resides within super, now I am aware that when taking money out tax is paid at a certain rate relative to years to retirement etc, usually in the vicinity of 20%, minus some discounts as normal through early access. I am thinking that if residential was purchased within the confines of super and that super is accessible early then if that person wants to live in the house early then I am thinking that the 20 percent tax would still be payable upon transfer, or something like that, assuming such a thing is possible, I am just trying to work out whether their is any benefits to purchase and transfer etc when funds are accessible early.

 

That is complex and not something that I can advise on. but I will point out that the member cannot use the property while it is held in a superfund.

 

Is it all right to give you a call sometime about it or not quite your area, ta

 

No, I don't give financial advice as not licensed.

 

ok thanks for that

 

I would be seeking advice on leaving TPD benefits in the fund. On death how is that to be taxed ? If it was withdrawn how would it be dealt with for tax ? Generally (not always) TPD fulfills a condition of release. Sometimes funds mislead people to leave funds in the fund to the detriment of the individual. I encountered a smsf that had rolloed over benefits aftre that isssue and it was eligible for release but when it was rolled over this was no longer eligible. The member had not been told that by the former fund and legal advice had to be obtained concerning poor financial advice and loss to the member.

You should seek licensed financial advice. And probably not from the fund.

There could be concessions for a first home buyer using the super (aftre withdrawal) that a fund cant access. And the member can never use a fund property while the fund owns it.

 

Thanks Paul, much appreciated