Life Interests Testamentary Trusts

Early Access to Superannuation

 
There are specific circumstances in which a member can access their superannuation benefits before reaching preservation age, including:   

       Terminal illness
       Financial hardship
       Permanent incapacity
       Temporary incapacity
       Compassionate grounds 

Case Study

Bill is 54 years old and has terminal cancer, he is worried about how he will pay his medical costs and is concerned about the burden on his family.  Bill’s GP and cancer specialist have certified that his cancer is terminal and he has less than 24 months to live. He wants to access the $400,000 he has in his superannuation fund. Bill therefore applies to his super fund for early release which is granted.  Bill can withdraw the lump sum in full or as progressive payments.   

Items to consider:

  Lump sum payments for terminal medical condition are tax free to the member and can be    used for anything the member desires

  Depletion of future retirement funds may lead to a shortage of funds for intended
   beneficiaries

  Ability to recontribute may be reduced depending on the age of member

  Possible loss of succession benefits particularly for a surviving spouse.

Should you believe any of the above apply to you please contact Andrew Marshall or Janine Orpwood at Langley McKimmie Chartered Accountants on (03) 5427 8100 for an initial consultation.

 

We provide accounting and wealth management services to clients in WoodendGisborne and Macedon Ranges areas within Victoria Australia.


 

 



The content within these articles was correct at the time of writing. Please contact us for updated information and advice. 

We provide accounting and wealth management services to clients in Woodend, Gisborne and Macedon Ranges areas within Victoria Australia.

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