Death
If you die, your super fund trustee will usually pay your death benefit to one or more of your dependants, or to your estate.
The death benefit is the total amount of money in the deceased’s superannuation account, plus any life insurance cover that was held through the fund.
Given the emotional stress caused by a death in the family, it is important that financial matters are as straight forward as possible. You can help ensure this by keeping your will up to date and nominating eligible beneficiaries for your superannuation death benefit.
Most super funds allow you to nominate your beneficiaries, either as a non-binding or binding nomination. If you don’t nominate anyone, the payment of the death benefit could be delayed and/or subject to dispute. It is recommended that you keep your beneficiary nominations up to date.
Super Guru has more detailed information on beneficiaries.
Death benefit disputes are one of the most common areas for complaint to the Superannuation Complaints Tribunal, so it is worth making sure your affairs are in order to reduce the likelihood of disputes once you are gone.
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