Who gets your Super when you die? Avoiding delays and disputes

The Government is planning mandatory standards for large super funds to improve how they handle death benefits. But why is this needed?​

When you die the super doesn’t automatically go to your estate. Instead, it’s paid to eligible beneficiaries by the fund trustee according to the fund rules, super laws, and any death benefit nomination you made. ​

The problem is that super laws only state that benefits should be paid to beneficiaries “as soon as practicable” which can be open to interpretation. While most are paid within 3 months, some can take over a year. ​

Common reasons for the delays include: no death benefit nomination, invalid/expired nominations, or multiple potential claimants.​

To ensure your super goes to the right place, you should have a valid death benefit nomination. A valid nomination must be in writing, signed and dated by you and a witness. The wording must also be clear and use correct legal terminology.​

The type of death benefit nominations include:​

If you don’t make a death benefit nomination or it’s invalid/expired at the time of your death, the superfund trustee will decide who receives your super based on state or territory laws. Typically, this will be a dependant or the legal representative of your estate.​

To avoid delays and disputes, make sure you have a valid and up-to-date nomination in place. This helps ensure your super goes where you want it to, with less stress for your loved ones. While there may still be a delay, the process will be a lot quicker.​