03 July 2023 - SMSF Estate Planning - BDBN v SMSF Will plus Bonuses

In this webinar with Grant Abbott, Australia's leading SMSF expert and author, Grant will take a deep dive into the intricacies of Self-Managed Superannuation Fund (SMSF) estate planning. He will look at the revamped LightYear Docs Binding Death Benefits Direction and Nomination (BDBN), discussing its laws, strategies, and potential pitfalls. Grant will also shed light on why BDBNs often do not work, and how advisers can instead build a super sophisticated SMSF estate plan for their clients​ using testamentary trusts​. 

Importantly we will tackle the comparison between an SMSF Will and a BDBN, explaining how the former can overcome the limitations of the latter. Grant will also touch upon reversionary pensions and the SMSF death benefits trust, a testamentary trust built by the trustee of the SMSF. This trust bypasses the deceased's legal estate and ensures that children are taxed at adult tax rates, offering a more favourable outcome for beneficiaries​. 

The webinar also addresses the potential legal consequences for advisers who make poor estate planning decisions, specifically in relation to BDBNs. These legal consequences can arise when an adviser recommends a BDBN for an SMSF despite the known issues and challenges associated with them. We will underline the importance of keeping superannuation estate planning separate from a Will, as the distribution of superannuation benefits is governed by the rules of the superannuation fund, not by the terms of the deceased’s Will​ according to case law and the ATO​. Lastly, Abbott will discuss the benefits of using a LightYear Docs SMSF Will, which offers several possibilities for distributing a member's benefits upon their death and becomes part of the governing rules of the fund, binding on the trustee​​. 

Attendees will receive one CPD hour and receive a copy of the presentation, a replay of the webinar and a client email on the differences between a BDBN and a SMSF Will PLUS how much to charge.