FIXED FLAGGED FOR LAWS

The Government is planning to fix super laws so a surviving spouse can get their dead partner's transition-to-retirement income stream.
The proposed law changes were unveiled by the Federal Treasury last week as DIY super experts prepared to gather at the SMSF Association national conference in Sydney and grapple with the changes that took effect on July 1.

The new laws allowed a full blown superannuation retirement pension to be passed on to a surviving spouse but placed restrictions on transition-to-retirement funds.

This created an administrative nightmare where a dead person had set up a transition-to=retirement income stream but the surviving spouse did not meet the requirements to be able to receive a full blown retirement pension.

The proposed changes will make it easier for the transition-to-retirement pension to be passed onto the surviving spouse. The present laws mean that if someone knows they're dying, they can convert their transition to retirement pension to a full-blown retirement pension to ensure the low-tax benefit will continue to be paid the the surviving spouse.

But it's now bad luck if you die suddenly or don't think to get around this mistake in Federal law.  The changes, if adopted, will make estate planning more certain.
(article supplied by the West Australian. Monica Rule the author and she has a book call "The Self Managed Super Handbook - superannuation law for SMSF's in plain English)

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