SMSF

A Self-Managed Super Fund (SMSF) is a small superannuation fund — up to six members — where the members are also the trustees (or directors of a corporate trustee) and so control the fund's investments and rules. On a member's death, who receives the death benefit is governed by the fund's trust deed together with any Binding Death Benefit Nomination. Because the surviving trustee often controls the payout, SMSFs demand careful succession planning to avoid the benefit going somewhere you never intended.

SMSFs give flexibility but concentrate power in whoever controls the fund after you die, so the trustee succession is as important as the nomination. Example: when Raj died, his second wife became sole SMSF trustee and — absent a valid binding nomination — paid his super to herself rather than his children from his first marriage. Coordinating the trust deed, a binding nomination, and a control-succession plan is essential, ideally with advice.