Hypotheticals by Manny Wood. Published in the Coffs Coast Advocate on 3 June 2017.
A year after David marries his wife, Joanne, he executes a binding death nomination with the effect that Joanne receives 100% of his substantial superannuation fund, in the event of his death.
David executes the binding death nomination in the presence of two witnesses and posts it to his superannuation fund.
A month later, David makes a new will, with the assistance of a solicitor. His will leaves the whole of his estate to his mother. David had been his mother’s carer for many years and was concerned that if something happened to him, she needed to be financially looked-after.
The solicitor advises David to make a new binding death nomination with the effect that the proceeds of his superannuation fund are to be paid to his estate (Legal Personal Representative) and distributed to his mother in accordance with his will.
David executes a new binding death nomination in the presence of two witnesses but fails to post it to the superannuation fund.
David’s health deteriorates and immediately prior to his passing, he posts the binding nomination to his superannuation fund.
After David dies, his executor contacts the superannuation fund and asks them to pay the proceeds into David’s estate.
The superannuation fund states that because they did not receive the binding death nomination before David’s death, it is invalid.
David’s executor applies to the Superannuation Complaints Tribunal.
The Tribunal hears that David married Joanne, 30 years his junior, as a terminally ill man. It is alleged that she exploited him to obtain permanent residence in Australia.
The Tribunal ultimately finds that the second binding death nomination is in fact invalid and orders that the whole of the proceeds of David’s superannuation be paid to Joanne, with the effect that his mother receives nothing.
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.
