Does Your Will Override Your Superannuation?
Many people assume their will controls everything they own — including their super. So does a will override a superannuation beneficiary? In most cases, no: your will does not automatically control your super, and the beneficiary nominated with your fund can override what your will says.
Why super is treated differently
Superannuation is generally not an asset of your estate. It is held in trust and controlled by your fund's trustee, so your will — which only deals with estate assets — does not automatically dictate where it goes. Instead, your super death benefit is decided by any valid binding death benefit nomination, or otherwise by the trustee's discretion.
Binding death benefit nominations
A binding death benefit nomination (BDBN) directs your fund's trustee as to who receives your death benefit; if valid and binding, the trustee must generally follow it. You can usually only nominate certain people — a spouse, child or dependant — or your legal personal representative (your estate). Some nominations lapse after a period unless renewed. If you want your super dealt with under your will, one option is to nominate your legal personal representative so the benefit is paid into your estate.
SMSFs and tax
Self-managed super funds add complexity, because control of the fund after death can influence how the benefit is paid. Tax also matters: benefits to a tax dependant such as a spouse are generally treated more favourably than benefits to a non-dependant adult child.
Frequently asked questions
Does a will override a superannuation beneficiary?
Usually not. Super is generally not an estate asset, so a valid binding death benefit nomination or the trustee's decision controls it — not your will. To have your will govern your super, you generally need the benefit paid to your estate.
Does my will control my superannuation?
Only if your super is paid into your estate — for example because you nominated your legal personal representative, or the trustee decides to pay it there.
What happens to my super if I have no nomination?
The trustee decides who receives it, guided by the fund's rules and the law, which may not match your wishes.
Make sure your super goes where you intend
Your super may be one of your largest assets — and one of the easiest to get wrong. Leyden Legal has helped families across Tamworth, Manilla and the North West with clear estate planning for three generations, reviewing wills and super together.
Contact Leyden Legal today to review your estate plan.
This article provides general information only and is not legal or financial advice. Super and estate rules are complex. Please seek tailored advice before acting.
