More than 15.5 million Australians will have no say in who inherits their superannuation
Millions of Australians lack binding death benefit nominations for their superannuation, leaving the distribution of their funds to the discretion of trustees. This issue is highlighted by a case where a woman was denied her uncle's superannuation despite his stated wishes, as the fund favored his estranged son.
Why it matters
It underscores the critical importance of legal estate planning and the potential for superannuation funds to override personal intentions if proper documentation is missing.
Brooke Allan could not claim her uncle's superannuation despite him stating, before his death, that he wanted it to go to her. ( ABC News: Daniel Irvine )
Super Consumers research estimates about 15.7 million people do not have a binding death benefit nomination, meaning their super fund can decide who inherits their accumulated super and any insurance when they die.
Not all funds offer binding death benefit nominations, so Australians are being urged to check.
The federal government has been consulting on whether to introduce mandatory time frames for super funds to respond to claims and will soon announce a decision.
Link copied Share Share article Brooke Allan loved her uncle like a father.
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