Hypothetical by Manny Wood published in the Coffs Coast Advocate on 11 April 2020.

David is married to Susan.

David has two children, to a previous relationship, Christine and Charles.

Susan is involved in a motor vehicle accident and unfortunately passes-away, leaving one daughter, Jenny.

After Susan’s death, David executes a superannuation binding death benefit nomination and because he has had little to do with Christine, he nominates Charles and Jenny to receive his superannuation when he dies.

The superannuation legislation allows David to nominate a child and/or a stepchild.

Two years later, David dies at the age of 55, as a result of carbon monoxide toxicity.

Christine becomes aware that her late father’s superannuation death benefit, which includes a life insurance component, amounts to $500,000.

Christine contacts her late father’s superannuation fund and argues that the binding nomination is not valid because when Susan passed-away, Jenny ceased to be David’s stepchild and she is therefore not entitled to be nominated. Christine says that in the absence of a valid binding nomination, the superannuation fund should pay the death benefit to herself and Charles equally.

In the alternative, Christine argues that her late father was suffering from profound grief and depression at the time he signed the nomination and that he was “manipulated in his fragile state of mind”.

The matter proceeds to the Superannuation Complaints Tribunal. The Tribunal acknowledges the “common law position” that a stepchild of a marriage ceases to be a stepchild after the death of their biological parent but ultimately relies on recent cases that find that a person can remain a stepchild if there is a continuing relationship between them and their stepparent.

The Tribunal also finds that on the basis of the medical evidence available, David was capable of making cogent decisions.

The Tribunal dismisses Christine’s complaint and she receives none of her late father’s superannuation.

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.