---
title: "For SMSF Trustees - Sapience Financial"
description: "Understand the importance of planning for SMSF trustees, including the risks of losing control due to illness or unexpected events."
url: "https://mail.sapience.com.au/services/modern-estate-planning/for-smsf-trustees"
date: "2026-06-05T19:02:21+00:00"
language: "en-GB"
---

#  For SMSF Trustees

 ![yellow gumboots and rainbow umbrella just in case it rains](https://mail.sapience.com.au/images/site-pics/catagorys/SMSF-Trustee-Power-of-Attorney.jpg#joomlaImage://local-images/site-pics/catagorys/SMSF-Trustee-Power-of-Attorney.jpg?width=1024&height=1024)## Modern Estate Planning for SMSF Trustees — and their members

Many Australians are beginning to hold significant levels of assets in super and for many Australians, super is becoming their largest asset (outside the family home) so it makes sense to ensure there’s appropriate planning in place for control of an SMSF after death.

Many people mistakenly believe their self-managed super fund (SMSF) is a set-and-forget structure and many still believe the balance of a super fund falls under the power of a persons Will document to distribute – and that is not the case.

- Superannuation funds are held in trust and not owned directly by the member of the fund - and therefore are said to be non-estate assets – outside the Will documents power to deal with.
- A wise strategy is to have a SMSF Death Benefit Nomination as well as a [personal Will document](https://mail.sapience.com.au/index.php?Itemid=933) in place, and for SMSF’s with Corporate trustees with a single director, a Company issued[ Company Power of Attorney](https://mail.sapience.com.au/index.php?Itemid=841).

### Who gets your SMSF benefits when you pass away?

When a self-managed super fund (SMSF) member dies, the SMSF generally makes a death benefit payment to a dependant or other beneficiary of the deceased.

But unless there is a Death Benefit Nomination in place, the trustee of a superannuation fund has the sole discretion to pay death benefits to an estate or directly to a dependant, such as a spouse, a child, or a financial dependant.

- In Australia, there's been litigation on issues where the courts have upheld the SMSF trustees decision to payout a deceased members super benefits in a way where the deceased member may not have intended.
- In the case of *Katz v Grossman* the courts upheld the SMSF trustees decision to pay out the deceased members super benefits, solely to one of two children - to the exclusion of the other.

### Who controls the SMSF when the Trustee passes away or suffers dementia?

Upon the death of a member of an SMSF, the SMSF trustee is responsible to administer the fund as to how the deceased members benefits will be paid out.

- SMSF funds have suffered significant losses where the Trustee suffered a stroke, was overtaken by dementia related illness or simply lost the ability to continue to make valid decisions about how the SMSF is run.

If there is a Sole Trustee only in place (with no Company Power of Attorney document in existence) there’s an increased risk of the company trustee becoming ‘locked,’ if the sole director were to become sick, suffer significant injury (or unexpectedly pass away) without the means to appoint a substitute.

### Estate Planning for Single Trustees of an SMSF

Good estate planning starts with three legal documents:

1. An SMSF Death Benefit Nomination
2. A [personal Will document](https://mail.sapience.com.au/index.php?Itemid=933) in place, and for SMSFs with Corporate trustees with a single director,
3. A Company issued[ Company Power of Attorney](https://mail.sapience.com.au/index.php?Itemid=841).

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