![](/content/dam/images/g/q/1/t/b/4/image.related.afrIndexLead.160x106.gvlzoq.png/1492562490597.jpg)
Inheritance pain in new super rules
Couples using death benefit pensions as part of their estate planning will need to rethink this strategy after July 1.
John Wasiliev writes on Personal Finance specialising in Superannuation & SMSFs, Managed Funds, Trusts.
Couples using death benefit pensions as part of their estate planning will need to rethink this strategy after July 1.
Retirees who hold "legacy" lifetime pensions face a wake up call - many will have to pay extra tax after July 1.
Despite changes to the tax rules, transition to retirement income streams (TRISs) should remain valuable tools for many savers.
Sometimes the super rules can almost be too simple. A case in point is a rule that will allow older Australians to continue to hold a tax-free pension, despite the forthcoming changes to transition to retirement arrangements.
A surprising aspect of the superannuation reforms is the restrictions that will apply to inheriting super sitting in accumulation accounts.
Take some time to plan carefully how you pass on your super to avoid your beneficiaries paying unnecessary tax.
Had a transition account you thought ended when you retired? It may not be that simple.
Got an account-based pension as well as a defined benefit income stream? What you need to know.
Confused about being over the new $1.6 million cap? For some, there's a six-month "grace period".
Retirees with pensions that exceed $1.6 million will need to know if their pension is sourced from a segregated fund.
If you're after CGT relief on assets in your pension fund, watch out for another potential tax liability.
Something as straightforward as making an extra withdrawal from a totally tax-free pension to finance home renovations could be quite a deal...
Will I be able to reset? That's the question many super retirees affected by the $1.6m pension limit – known as the transfer balance cap – a...
It's crucial to get your application right as the cost base will be reset forever.
If you have to move super exceeding $1.6 million back into an accumulation account, this is how the CGT rules will affect you.
When the going gets tough, the tough sort through the rules to make the most of them. Are you making the right contributions?
This is the end of super's golden era - now it's time to make the most of current perks and prepare for the changes.
Putting into practice the new super rules that will apply from next July will require some careful planning.
If you're moving excess pension above $1.6 million into another account, you'll need to make an important tax decision.
DIY super fund trustees face some tough choices when they come to grips with the new super rules.
More
Enjoy unlimited access to Australia's best business news and market insights across desktop, tablet and mobile
Already a subscriber? Log in