WHERE THERE’S A WILL THERE’S A WAY… Superannuation and your will

Super is not a normal asset that goes by will. 

With the old ComSuper scheme, a pension is paid to the worker, and a 2/3 pension to the spouse/de facto of the deceased if they were the spouse/de facto at the time of retirement.  On death of the spouse/de facto, the pension ceased and there is no lump sum. 

Some super, in particular for Police and Ambos, goes according to an Act of Parliament.  What the Act says can’t be changed.

Most often these days, super goes in accordance with a binding direction.  You need to make sure it is not different to your will… for example “to my children” has a different effect in a super direction than a will if one of the children dies leaving surviving grandchildren.  With a will, the share will normally go to the grandchildren, but not with a super direction. 

Otherwise most super death benefits go in accordance with the discretion of the super trustee, although a non-binding binding direction will usually be followed.

The trustee will look at who is dependent for super tax law purposes.  Most often a spouse or a de facto spouse will get either the whole death benefits or most of them.  Adult children, not super tax dependents, often won’t get much, and it is likely to be taxed at up to 15%. 

It’s always more than “just a will”.  The mistakes can’t be fixed after you’re dead.

Get it done properly by a competent legal professional with experience in the area.