My father died this year at the age of 53 years. We have been so stressed with the funeral arrangements and management of his estate that we neglected his super fund. What happens to his super fund?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Neha Sharma, Hillsdale 2036 NSW
- When a person dies their super is paid to their nominated beneficiary as a ‘super death benefit.’
- If your father had made a lawfully valid and binding death nomination then that person will receive the benefit.
- If no binding death nomination had been made then the trustee of the super fund has the power to decide the distribution of benefits.
- The benefits may be paid to the deceased’s estate to be dealt with by the executor of your father’s will.
- Alternatively the trustee of the super fund may decide to pay the benefit to the dependants of the deceased. Under the law you are a dependant if you are:
- the surviving spouse or de facto spouse;
- a child of the deceased under 18 years of age;
- a person who was financially dependent on the deceased; or
- a person who had a close personal relationship with the deceased.
- Depending on the type of super fund, the trust deed, the age of the deceased and the payment type you may have tax obligations and should consult a financial adviser if you are a beneficiary under the will.
- You may contact the super fund if you believe you are a beneficiary to your father’s super fund.