Protecting wealth, control and continuity
The death of a member of an SMSF puts the fund at a strategic, legal and emotional crossroads. What happens in the first 48 hours is critical—not just for compliance, but to secure the legacy and prevent irreparable damage from litigation, poor advice or financial paralysis.
When death occurs, a specialist practitioner, such as a Succession, Asset Protection & Estate Planning Advisers Association (SAPEPAA)-accredited adviser, must take control immediately. Why? Because most advisers miss the opportunity to lock in benefits, release cash to the family and shield the estate from family provision claims.
A specialist adviser will know Regulation 6.21(2) of the Superannuation Industry (Supervision) (SIS) Regulations permits an interim lump sum payment outside the estate to a SIS dependant. That means we can legally get money into the hands of the spouse, children or interdependent person, before any legal brawling begins. This includes:
✅ Funeral costs,
✅ Immediate family survival expenses (up to three months),
✅ Flowers and arrangements, and
✅ Specialist adviser or guardian of the estate professional fees.
This isn’t a loophole – it’s good strategy and grounded in super law.
💡 But here’s the rub: if your deed and trustee constitution are outdated or silent, you’re flying blind.
🔒 First 48 hours checklist: SMSF member death response
-
Immediately notify the fund auditor and commence deed review – ensure trustee powers permit inter vivos death benefit strategies.
-
Identify SIS dependants and legal personal representative.
-
Review pension documentation – confirm reversionary status or commutation needs.
-
Assess need for interim lump sum under SIS Regulation 6.22(3).
-
Arrange for a specialist adviser or guardian of the estate to take control.
-
Trigger special purpose death benefit trust (SMSF will) – not estate, avoid probate.
-
Secure all fund bank accounts – update authorised signatories urgently.
-
Record decisions and strategy steps in minutes immediately.
We aren’t just managing compliance – we’re protecting the family’s wealth from the moment of death. You don’t wait for lawyers, you don’t let emotion rule decision-making. You take charge, legally, strategically, immediately.
If your client’s fund doesn’t allow this yet, then get it upgraded yesterday –deeds, constitution and pensions, and appoint a leading member or SMSF guardian.
As advisers specialising in the area say: the risk isn’t dying – it’s dying without a strategy.
