Solutions for blended families
Did you know that one in three marriages ends in divorce? It's really no surprise then that the number of blended families in Australia is rising.1
Those who remarry are often keen to ensure their new spouse is well looked after if they die. This is often accompanied by a desire to also leave assets to children from a previous marriage. If you are in this situation, what happens to your assets after you have gone?
A small APRA fund (SAF) for blended families is an option that could be used protect your assets, provide for your surviving spouse and enable remaining capital to pass to your children. The Australian Prudential Regulation Authority (APRA) regulates SAFs.
How it works?
A SAF is similar to a self-managed super fund (SMSF) but with a professional trustee that is also regulated by APRA.
When you die, you could consider entering into an arrangement where your superannuation death benefit could be paid to your spouse as a pension throughout the remainder of their life that would be voided if your spouse died before you.
Under this arrangement, when your spouse dies, any remaining capital could be paid as directed by you to your children (or other superannuation death benefit dependants) or to your estate to be distributed as per your Will.
For more information on estate planning solutions for blended families, please speak to your financial adviser and if you want more information about setting up a SAF, please call our Client Services Team on 1800 254 180.
1. Source: McCrindle Research 2015, ABS Marriages and Divorces, 3310.0, 2014