Hypotheticals by Manny Wood. Published in the Coffs Coast Advocate on 1 September 2018.
Robert dies leaving few assets other than a substantial amount in his superannuation fund which has death benefit insurance of $600,000.
Robert had prepared a will leaving all of his superannuation fund to one of his sons, Luke. He left nothing to his son, Jason who he was estranged from as a result of continued abuse and assaults from Jason over a number of years.
Robert had also made a non-binding death benefit nomination for his superannuation funds to be paid to his legal personal representative with the intention that it is paid to his Estate and distributed in accordance with his will.
However, the superannuation fund is not bound by the non-binding death benefit nomination and makes enquiries with both of Robert’s children. The fund ultimately decides to distribute the superannuation funds equally to both Luke and Jason, contrary to Robert’s wishes as expressed in his will and in his non-binding death benefit nomination.
Greg on the other hand, similarly has two children, Sharon and Shane and unfortunately, he too is estranged from his son Shane who cut-off contact with Greg many years ago and has not allowed him to see his grandchildren.
Greg also has a very large superannuation fund with a death benefit of $750,000 but he makes a binding death benefit nomination giving all his superannuation fund monies to his daughter Sharon. He is informed that he needs to renew the binding death benefit nomination every three years, unlike a will which remains valid until it is revoked.
Greg dies whilst the binding death benefit nomination is still valid and as a consequence the superannuation fund is bound by the binding death benefit nomination and pays the funds to Sharon.
If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
