A recent court case has demonstrated to trustees the withdrawal and transfer of superannuation benefits prior to declaring bankruptcy will not protect those assets from creditors claims even if they remain within the retirement savings system, according to an SMSF technical specialist.
Heffron head of education and content Lyn Formica noted this outcome had occurred in the case of Kirk as trustee of the Property of Smith (a Bankrupt) v Smith [2024] FCA 240 heard by the Federal Court recently.
The defendant withdrew amounts from his superannuation account and transferred them into a personal bank account in 2016, with the funds then contributed to his wifes retirement savings. The husband subsequently filed for bankruptcy in 2019 after th…
Read the full article at: https://smsmagazine.com.au/news/2024/05/30/pre-bankruptcy-super-transfers-unprotected/