Got Yah. Aged Care., page-19

only the taxable component becomes taxable in the circumstances u say.... needs maths.

on the other.... the super fund is the asset (and is sorta not owned anyway, but a beneficial asset, owned by the trust and managed by the trustee)
if smsf then a piece of paper needs to be luckily signed before death to do what u r talking about....... allows the trustee to get on with the liquidation, otherwise generally nope.

a good topic area to throw money at someone for advice before u actually need it.