Is it possible to specify in a will, I leave $x to Person A’s super fund? If it’s possible, it ticks a few boxes I think.
Well let’s assume I die young, I could still leave assets to children outright, but I could also leave funds into super. In that way, the funds in super are protected from them spending, protected from potential divorce, protected from potential bankruptcy. Also would get years of compounding. Just a thought.
Ok, well let’s say I die not young, but earlier than average, and offspring are young adults. Could do so in addition to a testamentary trust. Super means at least their retirement is possibly comfortable regardless of their decisions throughout their younger days. Could even contribute to their super while still alive. Say as part of a Trust distribution. Like I say, just a thought.
A will can leave a testamentary entitlement to a beneficiary. A fund isnt a beneficiary. A person may not even be a member. The will could be defective
The superfund is a trust so a will could leave something to the trustee of the trust, but it would trigger CGT event K3 and might result in NALI too
Read TR 2010/1 also. The will could trigger excess contribution taxes and other outcomes that arent desired. A fund may be obliged to return contributions in some cases too eg no TFN was quoted. Member work test and more.
Still don't see how this is better than just creating a testamentary trust. If the concern is the beneficiaries spending the trustee can be appointed and instructed accordingly. Super would have all the age limitations, and lose out on the tax advantages of a tt.
The problem with this type of inquiry is the way the question is asked. 'Is it possible to do x' ignores the fact that there might be a better way than x in the first place.
Absolutely correct. But as my science teacher said back in the 20th century - “There’s no harm in asking the question. Only way to learn.” Thanks for the replies.
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