Tax implications for leaving your super to adult children

Planning to leave your super to your adult children? It pays to understand the tax implications.
Many Australians don't realise that adult children may have to pay tax on the taxable component of inherited super.
For example, if you have $650,000 in super and 90% of it is a taxable component, your adult children could pay around $115,000 in tax when they inherit it.
That's a significant amount of your wealth that could otherwise stay within your family.
The good news is there are strategies that may help reduce the taxable component of your super over time, such as withdrawing and recontributing funds, provided you meet the eligibility rules and contribution caps.
These strategies often need to be implemented over multiple financial years, so planning ahead is essential.
If leaving an inheritance is one of your financial goals, don't wait until it's too late to understand how your super will be treated.
The right strategy can make a meaningful difference to what your loved ones ultimately receive.
Always seek personalised financial advice based on your circumstances.
General advice only.
Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).