You may not automatically receive a benefit from your spouse/civil partner or unmarried partner’s superannuation fund.
The contributor to a superannuation fund is usually entitled to nominate a third party to receive the benefits due after the contributor’s death. This nomination is often not binding on the trustee of the superannuation fund and is merely a declaration of the contributor’s wishes.
Although the trustee of the superannuation fund has full discretion to distribute the benefit to whomever they feel is most deserving, in practice the trustee will usually honour the nomination.
A trustee will usually consider two (2) key factors in deciding how to distribute the benefit:
- What the contributor wanted and who was nominated by the member to receive the benefit; and
- Who had a financial reliance on the member when he/she died.
Each superannuation fund will have different internal rules as to how a benefit is to be paid out and how such a decision can be contested. If you feel that the trustee of the fund has wrongly distributed the benefit, you should contact the trustee of the fund as soon as possible.
A trustee of a superannuation fund must usually distribute the pension scheme within two (2) years of the date of the deceased’s death.
If no nomination was made by the deceased and no satisfactory beneficiary can be found, the superannuation benefit will usually be given to the deceased’s executor for distribution with the remainder of the estate.
Click here for some information on superannuation and nominations: Click here for more information.