Does your Will, Superannuation and Insurance all work Together?

29 JULY 2016 WILLS & ESTATE PLANNING
Wills and Superannuation

You will correctly regard your superannuation (whether self managed or not) as part of the wealth you have accumulated during your life time. However you must be careful that you deal properly with your superannuation as part of your estate planning because super does not always form part of your estate!

In a recent matter a client came to us to have some changes made to her will. The will included a number of very large gifts which the will said had to be paid from her superannuation and life insurance. However on checking the documentation for the superannuation and reading the life policy it came to light that they both nominated beneficiaries other than her estate. This meant that the proceeds of the super and the life policy had to be paid to the nominated beneficiaries and therefore the executor would have no money with which to pay the gifts set out in the will.

After proper consideration of the income tax issues the matter was easily rectified by changing the superannuation and life insurance so that they both nominated the woman’s estate. If this problem had not been detected when it was then the will-maker’s plan to treat all members of her family equally would have been completely upset and certain family members would have lost their inheritance (and they probably would have sued the estate).

As part of your estate planning it is important that you check that your superannuation, life policy and will are all compatible with one another. If you are unsure of how to do this contact us on 9440 1202 and we can look at your documents and give you sound estate planning advise so that your wishes may be carried out correctly.