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What Happens To Your Superannuation On Death?

Your death benefit – which includes any super money you are entitled to from your fund at the time of your death and any insurance payout as a result of death cover through your super fund – does not automatically form part of your estate. This is the case even if your Will has provisions for the payment of your super benefits.
Where no specific nomination is made by your Fund prior to your death, then the remaining trustees can distribute the relevant money at their discretion. To ensure that your super benefits are distributed in accordance with your wishes you can make a Binding Death Benefit Nomination.

Death Benefit Agreement
You can use a Binding Death Benefit Agreement document to nominate who is to receive any amount payable under the Fund in the event of your death. On the form, you tell the other trustees who you want them to pay money to and in what proportions.
Your fund can pay your death benefit to your dependents or to your estate or to a combination of both. Death benefit payments to dependents can be made as either a lump sum or a pension. Whereas death benefit payments to non-dependents made through your estate have to be made as a lump sum.
Death Benefit Agreement Setup
JustSMSF can organise a Death Benefit Agreement on your behalf. It is important to check that your SMSF’s Trust Deed allows for one to be made. The Trust Deed used by us does allow for them and most other up-to-date Deeds will as well. Please contact us to discuss.