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.