Reversionary Beneficiary
1st August 2018
Would you like your Superannuation Pension to continue as a regular income payment for your beneficiary as opposed to being paid out as a lump sum after your death? If so you may want to consider nominating your beneficiary as your Reversionary Beneficiary.
A Reversionary Beneficiary can provide both you and your beneficiary the certainty of receiving an ongoing income stream. Importantly, a reversionary beneficiary can still elect to withdraw all or part of the income stream as a lump sum if desired. Once the pension is reverted to your beneficiary after your death, they have full control over how the account is managed.
An income stream death benefit can only be paid to certain dependents, so it is vital you know who is an eligible dependent and able to receive a reversionary pension. Other considerations to take into account include possible taxation and Centrelink implication of nominating a Reversionary Beneficiary.
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