Where does superannuation go if there is no will?

If you do not make a Will then the assets pass in accordance with the rules upon intestacy.

Your superannuation benefit will be paid in accordance with your direction if you have made a Binding Death Benefit Nomination. But most people do not have a Binding Death Benefit Nomination in place and the Trustee of the fund is able to pay the money at its discretion. Usually it will be paid to a dependent spouse or dependent children, but it might also be paid to the Estate.

There have been recent Court decisions which confirm that a conflict of interest can arise if the surviving spouse wants the superannuation benefit to be paid to them and they also want to apply for Letters of Administration upon intestacy. It is bad enough that your partner has died without leaving a Will or without making a Binding Death Benefit Nomination, but then the legal system says that the surviving spouse has further restrictions placed upon them.

These problems can be easily avoided.

• Make a Will and get it done properly with the assistance of a lawyer.
• Make a Binding Death Benefit Nomination – don't leave the distribution of your superannuation benefit to chance!
• Review your circumstances from time to time to ensure that your legal documents are current and are aligned with your wishes.

There was a very effective drink driving campaign in Victoria which had the slogan:

"Drink and drive. You're a bloody idiot."

A variation of that slogan could be:

​ "Die without a valid Will. You're a bloody idiot!"

You can book an initial appointment with the Wills & Estates team online, or call 03 5445 1000.