Death Benefit Super Income Stream
Date published: September 2024
The Death Benefit Income Stream form was released on the Smarter SMSF platform from September 2024 and form replaces the documents from the old pension commencement form (which will now be decommissioned).
You can find the documents via your Dashboard > Documents > Create New Beta > Home / Document List.
You can utilise integrations with BGL, Class or SuperMate to populate the order form
The integrations allow you to import fund, trustee, member and account balance information in respect to the death benefit income stream where this is available from within your SMSF software.
The death benefit income stream form includes details of the deceased member, including their age to determine whether the pension is assessable for income tax purposes. In addition, the form captures the relationship to the deceased member in generating the documents.
A reminder of our software integration pages and webinars: smartersmsf.com > Documents > Integrations
The form will automatically populate the relevant rule number where the fund uses the Smarter SMSF deed - otherwise, this information will need to be manually entered:
The commencement details will determine the age of the beneficiary and will allow you to provide details of the income stream - eg. name, which will automatically populate from the SMSF software integration.
The form also allows for the member to request the death benefit income stream to commence without knowing the member balance - this creates a 2 step process in setting up the pension, once the account balance is known.
The pension can start with the entire balance of the deceased member’s interest, or alternatively the purchase price can be chosen - e.g. up to the individual’s personal transfer balance cap.
The form will automatically complete the calculation of the minimum pension, including where a pro-rata exists during the year, and no minimum where started from 1 June each year.
The form also allows for reversionary beneficiary/ies to be added (where applicable).
Where the pension is being paid under the Smarter SMSF deed, the death benefit income stream document can be selected as a ‘Paramount Document’, a feature which is unique to the deed.
A 'Paramount Document' means that document or Agreement that is made a Special Rule of the Fund and shall take precedence and priority in whole or in part over any other document, agreement or resolution made by the trustee of the Fund that purports to deal with a member’s superannuation interests in the Fund in a different manner (which can also include any binding death benefit nomination).
You can also choose whether to segregate specific assets to the pension, or alternatively leave the assets pooled amongst the fund members and/or interests of the members.
Prior to submitting the order, you can review the details before submitting.
As a Create document subscription member, the document can be submitted and an order will be deducted from the counter. For PAYG orders, you will need to make payment by credit card as part of submitting the order.
Completed order
Once the order is completed, the following documents are generated:
- Member request to commence death benefit income stream
- Trustee resolution to commence death benefit income stream
- Trustee notification of death benefit income stream commencement
- Product Disclosure Statement (PDS)
View the sample document
A copy of the sample Death Benefit Income Stream can be viewed below: