In most cases when someone passes away their super is paid to their dependents. However, there are instances where it is paid to the deceased’s estate.
If a person’s super is paid after death, it’s called a death benefit, this benefit is comprised of their super account balance and if there was any death insurance cover.
It is important to carefully consider who will receive any benefit as even if someone doesn’t have a lot of super, their death insurance benefit may be a substantial amount.
It is a myth a lot of people believe that death benefits are paid to the deceased person’s estate through their executor or legal personal representative and distributed in accordance with their will.
Unfortunately, this would only happen if the deceased person had a binding and valid beneficiary nomination directing the fund to pay funds to their executor or legal personal representative, or the super fund decided to pay the death benefit to them. It should be noted that without a binding death nomination, the trustees of the super fund can decide who to pay the benefit to regardless of what the deceased has stated in their will.
It is important to reach out to qualified professionals to discuss your estate planning needs and ensure you receive quality advice to ensure your estate planning is accurate, up to date and reflects your wishes, at Holzworth Legal our solicitor is here to listen and provide you with individual and knowledgeable advice.