Reversionary Pensions

Reversionary pensions! 

Reversionary pensions are a type of superannuation pension that "revert" from a member to their surviving spouse, child under 18 (can be up to 25 in special circumstances) or other restricted types of dependents and interdependents. 

Why are reversionary pensions useful?

Reversionary pensions are excellent for minimising tax, as the superannuation remains IN super rather than being paid OUT as a death benefit which is normally the case when a person passes away.

But reversionary pensions must be used with care, particularly when there is a blended family, as when the pension "reverts" it becomes an asset of the surviving spouse - which could trigger litigation or other unintended consequences.

As with all estate planning, reversionary pensions should be considered as part of a broader estate plan involving all trusted advisors - lawyers, accountants and financial advisors. 

Talk to us if you'd like to learn more - 02 6584 1185 or hello@mslaw.com.au