Who Controls My Super When I Die?

Q. I heard that I can’t control who gets my Super when I die. Is this true?

Josie’s Answer - Well done. You are on the ball. Yes, it is true that you can’t control who gets your super when you die.

It can be ultimately determined by the Trustee of your super fund (some stranger who has never met you!) If you have retail superannuation fund e.g. AMP, MLC etc or an industry fund (not a self managed super fund) it can be challenged in the Superannuation Complaints Tribunal (SCT).

One way around this is to have a binding nomination made within 3 years of the date of your death ( which is impossible if you had Alzheimer’s disease for those 3 years). Not all superannuation funds offer binding nominations.   Some funds also offer non-lapsing binding nominations.

Don’t get this mixed up with the standard beneficiary form they ask you to complete when you join.

You are in a safer position if you have a Self Managed Super Fund (SMSF). No one can challenge who gets your Super in a SMSF…. Just one of the privileges given to the people that can afford to have a SMSF. Even SMSF can have some pitfalls.

For example, if you and your wife die and the only remaining trustee is you’re your youngest child, then you are leaving it open for your youngest child to take everything, which means that nothing would then go to your other children.

Always a good idea to seek advice from a legal specialist (remember to get a quote first!).

Don’t forget that the above information is general in nature and not specific to your goals and objectives. It is recommended that you seek personal financial advice specific to your needs.