My father passed recently. He had a SMSF where he and my sister were directors of the fund. My sister is also the executor of his will. My sister and I are both nominated 50/50 beneficiaries of the fund. Is my sister able to sell all the shares in the fund and distribute without going to probate? And if so, would this be tax free? Thanks

Hi Bruce,

Sorry for your loss.

First thing I will say is please work with your accountant or adviser (whoever was helping your father). You need to work closely through this time as there is a lot of reporting required.

You won’t need to wait for probate as the SMSF is dealt with outside of the usual estate & probate process. But please get support from someone.

Regarding tax, chances are yes some tax will be payable. The calculation of tax payable is somewhat complicated so best to work with the accountant on this.

Please reach out if you require any further help.

Regards
James
03 9909 5800

Hi Bruce,

Sorry for your loss.

Your sister should be fine to start selling off the assets in the SMSF to clear your late fathers share of the assets. She is bound, as trustee, to ensure the funds are allocated per the binding nominations. The fund is independent of the will, so probate shouldn't be needed.

As you and your sister are adults and from the sound, financially independent of your father, there is likely to be tax implications on the account being closed.

For legal advice, I'd suggest Trainor Legal in Subiaco - 9380 4800. We can assist with the tax matters, though the fund will undoubtedly have an accountant from years past that your sister has dealt with. A sound financial planner may also be of value as this time.

Todd.