Superannuation and Family Provision Claims

Q.Please explain for me how my superannuation is dealt with upon my death and how the funds are dealt with when it comes to contesting a will.

A.Usually superannuation money is dealt with outside of the provisions in your will. The reason is actually very simple. You do not own your superannuation. Your superannuation is controlled for you by a trustee and the funds are held in trust for you. On your death the trustee distributes the funds for you in accordance with your wishes referred to as your death benefit nomination. If you have not nominated a family member to receive the funds the trustee will make the decision as to which “dependant” the funds should be paid. Superannuation funds are protected assets from a trustee in bankruptcy and should remain outside of your estate where possible just to be safe from a challenge against your estate. This is also relevant in the event someone contests your will. These funds are not part of your actual estate however may be designated notional estate but only in NSW. See notes on notional estate.