Superannuation & Death Benefits
I didn’t know I had that
For many people, superannuation and the associated death benefit will be the most significant financial resource that they have.
A public fund is usually administered by a large national financial/trustee institution. Alternatively, superannuation interests may be held through a self managed superannuation fund (“SMSF”). These funds are growing more and more popular, particularly with small to medium business proprietors.
Where valid, this results in the trustee being obligated to follow the instructions in the nomination.
It states who benefits are to be paid to and in what proportion. They provide certainty and peace of mind that your benefits will be paid as you intend.
A valid nomination to direct payment to your estate may then enable your superannuation death benefit to be dealt with pursuant to your Will which can allow for non dependants to benefit if you wish.
May be useful for dealing with blended families.
If a beneficiary feels that they have not been adequately provided for or missed out on a superannuation death benefit, they may apply to the SCT for them to review the trustee’s decision.
After review, the SCT has the power to either overturn or confirm the trustee’s decision with respect to that benefit.
The SCT does not have jurisdiction over Self Managed Super Funds.