Recorded Webinar: Super Death Benefits: More to it Than a BDBN

Having a valid binding death benefit nomination (BDBN) in place provides certainty as to who is to receive a super death benefit. If the nomination includes the deceased’s personal legal representative (LPR) or there is no BDBN and the fund pays the benefit to the LPR, that portion of the benefit then becomes an asset of the estate. This session explores the tax implications when this happens, including:

• How a deceased estate is taxed on a super death benefit
• Is the calculation of tax on a death benefit impacted by part or all of the benefit being transferred to a testamentary trust?
• How to determine who is the ultimate recipient of a super death benefit when the proceeds of the estate’s assets are intermingled, including:
  • whether the LPR can pick and choose how much of those intermingled assets go tax effectively to which beneficiary
  • whether journal entries are sufficient to account for the appropriation
• What supporting documentation would the LPR require to determine whether a beneficiary was:
  • in an interdependent relationship with the deceased
  • was financially dependant on the deceased just before the deceased’s death
• How is a death benefit that includes an untaxed life insurance component, taxed in a deceased estate?
• Can a super proceeds trust be set up by the LPR or a beneficiary, if the requirement is not included in the will?
• A comparison of the taxing of super death benefits received by beneficiaries directly from the fund and via the estate
• Case study