SMSFs have now potentially become more of an estate planning vehicle after the implementation of the $1.6 million transfer balance cap, a sector strategist has said.

SMSF trustees must place greater importance on their estate planning arrangements and engage with a professional adviser, otherwise they could experience pitfalls and expensive court cases due to incorrect documentation.

Putting in place a binding death benefit nomination (BDBN) that does not lapse after three years should be the preferred estate planning strategy for SMSF trustees, according to a specialist superannuation educator.

SMSFs can act as an effective vehicle for the transfer of wealth across generations if the estate planning aspect of these funds is properly put in place, according to a wealth management accountant.