Page 17 - Best Of Local Mag September 2023 Edition

Super Death Benefit

In 1991, the Federal Government introduced • Use their discretion to decide which
a guarantee that all Australians would dependent or dependents to pay the
have a fund to use for their retirement death benefit to; or
and introduced Superannuation. Since • To make a payment to your legal
then, it has become a major asset for most personal representative (executor of
Australians and is often a large component their estate) for distribution according
of your total assets when you pass away. to the instructions in your will.

It is a common misconception that when you A death benefit can be paid as either a lump
FAMILY pass away, your Superannuation becomes sum or income stream. If a death benefit is
part of your estate. In most situations, your paid to someone who is not a dependent, it
LAW super fund pays any super held at the time must be paid as a lump sum. and/or you each provide the other with
of your death to a nominated beneficiary, domestic support and personal care.
rather than the money being paid to your So, the question is – who is a dependent? A
estate. This is called a “super death benefit”. dependent under superannuation law is a If you wish for your superannuation to go
Most super funds, including self-managed person who at the time of death was: to a non-dependent, then it may be best to
super funds, allow you to make a nomination nominate your legal personal representative
to a beneficiary of your choice, by making a • A spouse or de facto spouse; as the beneficiary of your superannuation
non-binding or binding nomination. • A child of the deceased (any age); or and distribute your super through your will.
• A person in an interdependency
If you did not make a nomination, or have relationship. This relationship exists if You should always read your Superfund’s
WILLS a non-binding nomination in place, the you have a close personal relationship distribution guidelines before making any
RETIREMENT AND trustee of the fund may: with that person, you live together, death benefit nomination.

VILLAGES ESTATES Bader Pendergast-Lee is Solicitor at Zande Law Solicitors, Suite 9, Norwinn Centre, 15 Discovery Drive, North
Lakes, practicing in the areas of Wills and Estates. If you need legal advice in relation to distributing your
superannuation through your estate, please make an enquiry with our office and our wills and estates team
will assist you with your estate planning and your wishes regarding your superannuation.

The information in this article is merely a guide and is not a full explanation of the law. This firm cannot take
responsibility for any action readers take based on this information. When making decisions that could affect
your legal rights, please contact us for professional advice.

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