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Super and estate planning

Can death benefits be paid in specie?

Section: 14.6

Yes, where permitted under the fund's governing rules, a lump sum payment may be in the form of cash or in specie. The definition of lump sum allows a lump sum payment to be paid in the form of cash or in specie. An in specie payment is made with fund assets (eg shares in a publicly listed company) rather than money. When making an in specie payment, trustees must be able to substantiate the value of the relevant asset or assets for both SIS and taxation purposes. Death benefit pension payments cannot be paid in specie.

Last modified: Wednesday, July 24, 2019