Current SMSF Income Streams Documents
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      Addition of a Reversionary Pension

      About Product

      The LightYear Docs Addition of a Reversionary Pension enables an existing account based pension to add:

      • Comprehensive estate planning
      • Reversionary pensions for grandchildren
      • A special purpose SMSF testamentary trust for adult child reversions with adult tax rates for minors

      Additions require an upgrade of the existing trustee of the Fund. The interview process and pricing includes an upgrade to a standard SMSF or a Leading Member SMSF.

      Transfers on death to a superannuation proceeds trust in an estate.

      ► $295.00 (inc GST) - OR provided under your unlimited membership (exc ASIC fee)

      ► The master document has been signed off by Abbott & Mourly and is congruent with Australian law.

      General Information

      It is vital from a tax, superannuation and family perspective that any income stream including an account based pension includes the ability to carry on the pension to a reversionary beneficiary (the next in line).  This can see a pension pass through one, two, three or more hands.  From a tax perspective the reversionary beneficiaries will receive the income tax-free if the original pension member was in receipt of tax-free pension income for being over age 60.  However, to add a reversionary pension can require a substantial amount of paperwork and if done incorrectly, damage the tax and estate planning abilities.  With the LightYear Docs Addition of Reversionary Pension, the process, which includes a deed upgrade is all done for you.

      Benefits

      • The LightYear Docs Addition to a Reversionary Pension is easy to use and apply.
      • It includes relevant Member application, terms and conditions of the reversionary pension three levels deep, trustee minutes and also a deed upgrade.
      • The Addition of a Reversionary Pension does not impact the member’s Pension Transfer Balance.
      • The pension payments are tax-free to the reversionary beneficiary if the original pension member was over age 60.
      • The pension does not form part of the deceased’s estate and is not impacted by the member’s Will

      Frequently Asked Legal Questions

      What does the package include?

      The LightYear Docs Addition of a Reversionary Pension package includes:

      • Deed upgrade to ensure that the special process used for adding a reversionary pension is available as this is not a feature of non-LightYear Docs SMSF deeds
      • Application by a member to add a reversionary pension beneficiary
      • Provision of terms and conditions in relation to the reversionary beneficiary or chain of beneficiaries
      • Trustee resolution to confirm the pension in accordance with taxation and superannuation laws

      When can the LightYear Docs Addition of a Reversionary Pension package be implemented?  

      It is perfect to start once an existing account based pension is identified.

      What happens on the death of the pension member?

      The pension does not stop, unless there is no further reversionary beneficiary, but continues on.  For example, it may start at John Smith with a reversion to his wife Sally Smith and then to his eldest grandson Fergus who was a financial dependant of John at the time of John’s death.

      How is the reversionary beneficiary impacted from a pension transfer balance account perspective?

      For a spouse – it is to be included in their transfer balance cap 12 months from the date of the death of the original pension member.  This enables a commutation of the pension in that time if it is an issue.

      If it is commuted to an adult child it will not impact their pension transfer balance.

      If it goes to a child beneficiary, then it is included as part of their pension transfer balance cap.  However, that will be reduced by any commutation payment, which may be required at age 25 under the superannuation laws.

      How long does this document take to assemble?

      Depending on the complexity of the data, this document should take approximately 30-50 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

      Is this document a legal document?

      All master documents have been signed off by Abbott & Mourly lawyers. Tony Anamourlis of Abbott & Mourly advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LightYear Docs platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LightYear Docs platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

      However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed  legal document provided by Abbott & Mourly.

      The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

      “if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

      Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances.  The Court held that this process was legal work.

      Is the document easy to read?

      All LightYear Docs products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lightyeardocs.com.au.

      What lawyers sign off on the LightYear Docs documents?

      All LightYear documents are prepared and signed off by Abbott & Mourly from Melbourne, Sydney and Brisbane.

      Are the LightYear Docs documents reviewed regularly?

      All LightYear Docs documents form part of the LightYear Docs internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.

      Can I get a sample of this document?

      Yes, please email support@lightyeardocs.com.au to request a sample document for you to review.