XMAS Strategy No 2 - Save on SMSF Death Duties

The ATO ruling on pensions says that a SMSF pension stops when the pension member dies - meaning that any lump sum payment to a spouse will suffer capital gains tax in the fund - rather than being tax free.  The simple solution is to convert the SMSF pension to an auto-reversionary pension resulting in the pension carrying on past death and saving CGT death duties.  To do this easily - roll back an existing pension and recommence a new pension with an appropriate auto-reversionary.  But do it before Christmas to provide cover just in case.  If you need help - see Grant in our SMSF Estate Planning webinar on 6 December 2011.