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Super and estate planning

Rollovers of super death benefits

Section: 14.11

A child may commute a death benefit income stream but is not able to roll over a death benefit income stream. This is because the definition of a rollover super benefit specifically excludes benefits that arise from the commutation of a death benefit income stream by a person who was not the spouse of the deceased.

Only the spouse of a deceased member is able to commute and roll over a death benefit income stream after the prescribed period. Such a commutation by a spouse is treated as a super member benefit in the spouse's hands, and it may be rolled over to either another super income stream or to an accumulation account.

However, it is important to note that any new income stream commenced by a rollover is no longer subject to death benefit income stream tax rules.

Last modified: Tuesday, May 2, 2017