Australia: Wills/ Intestacy/ Estate Planning

When you pass away, your superannuation doesn't automatically become part of your estate—it's held in trust and distributed according to specific rules. Without the right nomination in place, the fund trustee, not your will, may decide who receives your super. Understanding binding versus non-binding nominations and ensuring your documentation is valid can make the difference between your wishes being honored or your super going to unintended beneficiaries.

In this recent decision, the New South Wales District Court held that the Federation Council owed and breached a duty of care despite contracting operations to a third party, awarding damages of $165,000 to the plaintiff and enforcing indemnity obligations requiring Remlap to indemnify the Federation Council for the plaintiff’s claim.

Division 296 is not a tax issue to be addressed in isolation. It is an estate planning and governance issue that demands proactive, whole-of-balance-sheet thinking.