SMSF – What Happens When A Member Dies?

When a member of a Self-Managed Super Fund (SMSF) dies, a legal personal representative is appointed to take over the deceased member’s interest in the fund until their benefits are paid to their beneficiaries. If the SMSF has individual trustees, the remaining trustee must ensure that the fund still meets the definition of an SMSF, which may require setting up a corporate trustee or transferring the super to another fund. The summary also discusses death benefit nominations, who qualifies as a dependant, and how death benefits are taxed. Clear guidelines in the trust deed can prevent disputes over the payment of death benefits.