What happens to my Super when I die?
MB+M OzPlan’s Wealth Creation Team looks at the difficult question: What happens to my Super when I die?
It’s important to understand what can happen to your Super when you die. We look at 3 different scenario’s to help you think through your Superannuation situation.
Case 1: My Will will deal with it …
A widower prepares a Will that leaves everything equally to his three children. He does not have a binding death benefit nomination (BDBN) with his super fund.
He assumed the Will would deal with his super, but now that he has died, one of the children successfully applies to the super fund and receives all the super for himself. He is estranged from the family so this causes distress for the other two children. And, the Will does not include an adjustment clause to take into account monies received outside the estate.
Case 2: I have a Binding Death Benefit Nomination …
A mother prepares a Binding Death Benefit Nomination (BDBN) leaving all her super on her death equally to her three children.
The BDBN is invalid because it expired after 3 years. Her de facto spouse of 1 year successfully applies to the super fund and receives all the super.
Case 3: I MUST have a Binding Death Benefit Nomination …
A client is under the impression they must have a BDBN, so they prepare a BDBN to pay all their super on their death to their estate.
However, a BDBN to the estate forces the payment to the deceased estate so that the Will deals with it. The client had a spouse that, for financial reasons, would have been better off taking a reversionary pension from the fund. She can no longer do that because the BDBN was valid and so the super fund must pay the super as directed.
How do I know what is the right solution for my situation?
The question you might be asking right now is: How do I know what is the right solution for my situation? It can be a minefield.
The best solution is to talk your personal situation through with your Adviser. Give us a call on 5831 1233 or email firstname.lastname@example.org to request an appointment today.
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