One of the most common misunderstandings about assets and wills relates to superannuation funds including self-managed ones. Considering that a person’s super balance can often be their most valuable asset, what happens to it upon that person’s death is of prime importance. So let’s clear it up!
A Will does not govern how the wealth in your super fund is distributed. The funds in your super do not form part of your estate. What happens to them is governed by the trust deed of the super fund. The most effective way to direct super funds benefits is by using a Binding Death Benefit Nomination. It requires the trustee of the super fund to pay the benefits to the person you nominate who can be a dependant such as a spouse or child or even the legal personal representative of your estate.
If no nomination is made to the trustee of the super fund, then the trustee will usually have a discretion as to who should receive your super fund wealth. So, it is your choice as to whether the benefits end up with specific dependants, your estate or you wish to leave it to the trustee to decide. Before acting, it is best to fully consider your own family circumstances, taxation considerations and the terms of your super fund deed.
August 2026