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Lacey Nicholson

Oct 13, 2023

Benefit withdrawal by ePoa

in SMSF Technical Forum

I have had this scenario presented to me: My client is a member of an SMSF her funds are in pension phase. She is in the SMSF with her daughter and two sons. Her sons have an ePOA for her.

Her daughter does not have POA but will receive all my clients super when she dies (via Will as no BDN’s in place), she is not a financial dependent.

My client has had a serious accident which has left her as a paraplegic and because there is no chance of recovery she has instructed her doctors to stop life prolonging care. She is currently mentally 100% but cannot sign anything.

Can her sons as POA’s sign letters/ minutes on her behalf requesting her pension balances be paid out in their entirety? (My Clients Will has segregated assets very specifically and her sons will not be entitled any cash or Super).

Alternatively could a recording of my clients request to withdraw the funds be admissible?

She would like to take out all her balance so that her daughters share of her estate is not eroded by death benefit tax.

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Oct 15, 2023

Hi Lacey

I would recommend that you review the Fund's trust deed to see what is required to pay out a lump sum benefit and what is required re a ePOA.

If the ePOA allows the children to do act for their mother they should be able to sign letters / minutes on her behalf. To further support this then yes a recording of the mother's request would support the transaction being made.

Thanks

The Auditors Institute