Who will get your super

Make sure your death benefits go to the right person by keeping the paperwork up to date

-  ALEXANDRA CAIN

The issue of making sure your super goes to the person you intend it to when you die was put in the spotlight in 2021 with the case of the late Ashleigh Petrie.

The trustees of her super fund, Rest, initially determined her reportedly $180,000 superannuation and life insurance benefit should go to her partner on her death. It was a controversial story due to the pair’s age difference (she was 23, he was 68) and brevity of their relationship.

But it has important lessons about how the law works in relation to who is entitled to someone’s superannuation on their death.

“This was an unusual and complicated case in which the super laws were applied correctly, but perhaps not justly or fairly, given the circumstances of the case, and hence it was disputed,” says Andrew Yee, director of superannuation at financial services firm HLB Mann Judd.

“The deceased left her super benefits to her mother, but it appears it was not a binding nomination and it was overridden by discretion of the trustee of the fund, who paid her super benefits to her de facto partner at the time of death.

“This is because the trustee considered the nomination invalid, as a parent of the deceased is not considered a dependant under the super laws. This is unless it can be proven that the parent is financially dependent on the child,” he adds.

The case highlighted the importance of understanding to whom you can direct your super death benefit. It also brought into focus the importance of ensuring you regularly review and update your wishes about who you want your super to go to when you die. The best way to do this is through a binding death nomination.