SMSF trustees, she said, may want to establish testamentary discretionary trusts in their will, for example, and ensure they’ve got appropriate people appointed as trustees of those trusts, who can not only control not only the tax effectiveness but also control who actually receives the benefit.

“If I’ve got a scenario where I’ve got $4 million in super, and I want that to go to each of my three children, and that’s what my binding death benefit says, then each of those children can get their $1.33 million, but they can each only have a third of the $1.6 million staying in super,” she said.

“So a lot of the time you’ll have scenarios where you might have that amount each and they might be quite sensible and leave their $533,000 as a death benefit pension, but then what’s going to happen to the money that has to come out of the super system?”

While this isn’t usually a problem for younger children under the age of 18 because their legal guardian will control their finances, it could be an issue for younger adults who are 18 for example, she said.

“If $1 million has to come out of the super system then you tend to see erratic spending. In my experience the parents of adolescents, while they’re interested in the tax effectiveness [of their estate planning], they’re far more interested in being in control of their money and making sure that the children can’t make inappropriate choices or choices that the parents rather they didn’t make.”

Establishing a testamentary trust in the will can therefore create peace of mind for the parents, she said.