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clock Created with Sketch. 05/03/23
20:52
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Originally posted by sholtz:
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Under current law, a transition to retirement income stream cannot revert to the deceased’s spouse unless the spouse has met a condition of release, such as having reached the age of 65 or reached their preservation age and retired. This does not mean, however, that a new pension cannot commence from the SMSF and be paid to the spouse. In addition, money in the deceased’s accumulation account can be paid as a new pension to the surviving spouse. The surviving spouse needs to ensure that if they have their own retirement pension it does not exceed the current transfer balance cap of $1.6 million when the new pension is added to it.As the deceased’s transfer balance cap is not transferable to their spouse, the spouse can either reduce their pension by putting money back into their accumulation account, or pay out some of their pension as a lump sum benefit prior to receiving the reversionary pension or the new pension. The spouse cannot put the deceased’s super into their accumulation account.
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Regardless of how it gets there, I'd be interested to see, when all this settles down, how the ATO will treat a dependent who's superannuation exceeds the $3M cap due to an inheritance from a deceased partner.
