What You Don’t Know About Superannuation and Your Estate

Superannuation Entitlements

Did You Know:

As of 31 March 2023, the total member assets of the Australian Superannuation Industry surpassed $2.1 trillion, held across approximately 22.2 million member accounts.

One common misconception is that your superannuation fund automatically forms part of your Estate upon death.  However, in most cases, this is not true.  Generally, superannuation does not form part of your Estate, and therefore, your super will not be distributed per the terms of your Will.

Unless you have made a valid, binding death benefit nomination on your superannuation policy, the recipient of your superannuation entitlements is subject to various factors. This includes the terms of the superfund’s trust deed, the relevant legislation, and the superannuation trustee’s discretion.  Without a valid nomination, the trustee may decide how your benefits are distributed, although often to your dependents or legal personal representative, i.e., the Estate.

Creating and reviewing a binding death nomination regularly is essential to ensuring your superannuation entitlements are allocated according to your wishes.

If it’s been more than five years since you last updated your Will, are you confident that it still reflects your current wishes and protects your loved ones? Now might be the perfect time for a review.