Self-Managed Super Funds


Estate Planning

Reversionary pension nominations

If an SMSF member has an account in pension phase at the time of their death, under superannuation law the pension ceases at the point of death, unless a dependent beneficiary is automatically entitled to a reversionary pension.

Where a super income stream automatically transfers to a beneficiary (i.e. an auto reversionary pension) trustees must ensure that the minimum pension payments continue to be made, including in the year that the death occurred. 

Tip

A reversionary pension nomination is made at the time a pension is commenced in the SMSF. It is important to check relevant superannuation law and the SMSF’s trust deed to see if a reversionary pension nomination is allowable.