By Annalyse Betts and Kerin Cotchett
Do you have questions regarding where your Superannuation will go when you die? See our article Where will your super go when you die?
The loss of a loved one is difficult*, especially when you were financially or otherwise dependent on them. You may be listed as a beneficiary in your loved one’s Will, therefore becoming a recipient of their estate. If you have not been included in the Will, there may be alternative courses of action for you.
Firstly, you may be eligible to commence a Family Provision Claim, for more information on this see our article Family Provision Claims 101.
Secondly, you may be eligible to claim for part or whole of the superannuation benefit. The general rule is that superannuation does not form part of your estate when you die. Your superannuation is held by the trustee of your super fund who is governed by that superannuation’s trust deed. This deed directs how the trustee of that superannuation fund distributes the deceased member’s proceeds.
A binding death benefit nomination is a nomination that obligates the trustee of the superannuation fund to pay the deceased’s members proceeds in accordance with the direction in the nomination. If your loved one has not executed a binding death nomination you may be able to lodge a claim with the Trustee requesting to be considered for a part or full payment of the benefit.
A few quick points you should consider:
Who can make a claim?
Who is a dependent?
What does a claim involve?
What about tax?
What if I am not happy with the result of the claim?
It is important to note that every superannuation trustee has different rules (in addition to the Superannuation Industry (Supervision) Regulations 1994) which guide them on how the benefit will be paid and to whom the payment may be awarded to. For further information or detailed advice regarding your claim, please do not hesitate to contact our office. We have experienced solicitor’s in our Wills and Estates team who are happy to assist.
Elringtons Lawyers |Wills and Estates
p: | 02 6206 12300 | e: firstname.lastname@example.org
*For the purposes of this article, a reference to a loved one is a reference to a spouse or de facto (domestic) partner.