Most people will not be thinking about superannuation when a family member is diagnosed with a terminal illness. Super can be withdrawn if a condition of release is met. Conditions of release include situations where the member of the super fund is suffering from a terminal medical condition. However, most people if asked would say they worry more about putting money into their super than taking it out. So, why would a member consider using such a condition of release to take out their super? Withdrawing super early can allow for proper planning for the funds and could also increase the funds which the family will inherit. Tax is payable on the withdrawal of super unless the super is paid to a tax dependent. Thus, if the super is not withdrawn until after the member has passed away, the family who inherit the super may lose between 15-30% of the lump sum payable from super in tax. There are, however, many issues to consider which should be properly thought out. Whilst time might be of the essence, it is very important to seek out proper expert assistance before commencing a withdrawal strategy.
Our lawyers are available to assist you with advice about estate planning.
Liability limited by a scheme approved under Professional Standards Legislation