Parliament has passed a major omnibus tax bill into law which clears up rules around payouts to the estates of deceased KiwiSaver members.
The issue hit the headlines earlier this year with media reports about how KiwiSaver managers were unable to make payments to estates due to complications with the law.
The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill, was passed last week and now provides some clarity around this issue.
One is a change to the KiwiSaver law allowing families of members who die to have quick access to funds in the dead member’s account.
From 1 July 2007, up to $15,000 from a dead member’s account can be paid out directly to nominated persons, without their having to await probate if the member left a will, or letters of administration if the member died intestate.