Terminally Ill – Should I take my super out or not?
It’s horrible to think about – being diagnosed with a terminal illness – but there are some interesting things to bear in mind.
If you know you’re going to die, you will want to do what’s best for your family, but you’re probably also going to want to have a bit of fun while you’re still feeling ok.
If you have superannuation, you can access it and get it paid out to you if you’ve been diagnosed with a terminal illness. This might be the way of getting the cash that you need to have a bit of fun, but to also cover some treatments, if necessary.
The other positive thing about taking our your own superannuation in this circumstance is that you will not be taxed on it.
If you are single, however, you should have a serious think about whether to access your superannuation or just to put all your expenses on credit cards. You should really get some advice.
If your superannuation is your biggest asset, and everything else if pretty much mortgaged or covered by debt, then you should think about whether your estate is going to be solvent or insolvent after you die.
Remember in this article, I explained that superannuation is not an asset for estate purposes. So, if you estate is insolvent, your superannuation cannot be used to pay debts. All those credit cards that you spend money on going on a final big holiday and having a big farewell party to the world will not be paid off by your superannuation. That is, if you don’t take your superannuation out.
So, some serious consideration needs to be given about accessing your superannuation if you’re terminally ill. You might want to protect it, and preserve it for your children.
