Superannuation Death Benefit

A superannuation death benefit is the balance of your super account plus any life insurance held inside it, paid out when you die. Crucially, super is not automatically part of your estate — the fund trustee decides who receives it, unless you have a valid Binding Death Benefit Nomination or direct it to your legal personal representative. For most Australians, super is one of the largest assets they leave behind, so getting the nomination right matters as much as the Will itself.

Because super sits outside your Will by default, you control it through a nomination form lodged with your fund, not through your Will clauses. Example: Priya had $480,000 in super and assumed her Will covered it, but with no valid nomination the fund trustee paid the benefit to her estranged spouse rather than her children. Self-managed funds (SMSFs) follow the same principles but the trustee is often a family member, which can create conflicts.