MLM727 : Superannuation Law And Policy - SMSF - Superannuation Law And Policy Assignment Writing Help

Internal Code: 1AJCGI

Superannuation Law And Policy Assignment Writing Help

TASK Greg was a member of a three person SMSF with his two best friends. All threewere trustees of the fund. The SMSF contained the following clause in its trust deed: A member of this fund can make a Binding Death Benefit Nomination. This will have the effect of binding the trustee regarding the distribution of the member’s interest upon their death. A Binding Death Benefit Nomination must satisfy the requirements in the Superannuation Industry (Supervision) Act 1993 and the relevant  regulations. Greg had been divorced for 6 years, and had a 19-year-old child who was a full- time student who lived with him. His wealthy mother also lived with him. His mother paid all the household bills (including grocery bills). Greg’s mother, due to her arthritis, had limited mobility so from time to time Greg would drive her around. Greg and his mother had agreed that in a year’s time if she was in reasonably good health she would live with her other son in the USA. During 2017 Greg had written and signed a letter which he titled “Binding Death Benefit Nomination” that he had sent to all the trustees of the SMSF. Under it, he wrote that “I am binding the trustees to distribute 100% of my superannuation interest to my mother”. He had this witnessed and signed by his work colleague Linda. Greg unexpectedly passed away in early 2018. His superannuation account was in its accumulation phase and had a balance of $600 000 (50 per cent taxable component).