Therefore the question remains if not in cash or in what form of benefits – to what extent may the benefits be acceptable under Superannuation regulations to avoid a breach ?
There is a general rule in regulation 6.21 of the SIS act which requires Super Death Benefits must be cashed to a Beneficiary as soon as possible after the members Death. In addition subregulation 6.21(2) requires that the form in which benefits may be cashed under this regulation is any one or more of the following forms. (a) In respect of each person to whom benefits are cashed (i) A single Lump Sum (b) Subject to regulation 6.21(2A) and 2(B). (i) 1 or more persons
Accordingly a deceased members interest in property can be cashed as a LUMP SUM or a pension. This article will focus on cashing benefits as a LUMP SUM. Therefore, the definition contemplates that a LUMP SUM payment can be made by way of transfer of a NON CASH LUMP SUM (ie an ASSET, provided that a super fund’s governing documents allow (Trust Deed must explicitly permit the payment of LUMP-SUM benefits in kind) it and do not impose restrictions in this respect.