Solutions for blended families

Did you know that one in three marriages ends in divorce?1 No surprise then that the number of blended families in Australia is rising.2

Clients who remarry are often keen to ensure their new spouse is well looked after in the event of their death. There is also often a desire to leave assets to children from a previous marriage. This can be particularly important if clients remarry later in life, do not have any subsequent children and have accumulated significant assets in their superannuation fund.

If you have a client in this situation, what happens to their assets when they die?

Our small APRA fund (SAF) solution for blended families offers a way to protect their assets, provide for a surviving spouse and ensure that any remaining capital passes to their children. The Australian Prudential Regulation Authority (APRA) regulates the fund, known as a small APRA fund (SAF).

How it works?

  1. Your client transfers their super to our AET small APRA fund (AET SAF). A SAF is essentially a self-managed super fund (SMSF) with a professional licensed trustee.
  2. When your client dies their superannuation death benefit will be paid to their spouse as a pension for the remainder of their life. If their spouse dies before them, the arrangement is voided.
  3. When the surviving spouse dies, any remaining capital will be paid as directed by your client to their children (or other superannuation death benefit dependants) or to their estate to be distributed as per their Will.

Incorporating our AET SAF into your estate planning strategy for a client will give them peace of mind knowing that their super will be distributed according to their wishes. To find out more, read our case study and technical flyer.

For more information on small APRA fund solutions for blended families, please call us on 1800 254 180.

1. Source: McCrindle Research 2015, ABS Marriages and Divorces, 3310.0, 2014
2. Source: McCrindle Research 2015, ABS Marriages and Divorces, 3310.0, 2014

By having an estate plan in place, you can be sure that your assets will be managed and distributed the way you want and in the most tax-effective manner.

Meet the Estate Planning Team

Ravi Malhotra

Head of Business Development, Private Client Services

Sydney office

Peter Hewish

Head of AET Estate Planning

Sydney office

Jennifer Petrovska

Estate Planning Lawyer

Sydney office

Jennifer Wilson

Senior Estate Planning Lawyer

Brisbane office

View all members in our Estate Planning Team.View team