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Estate planning

On your death, your superannuation benefits in the Fund may be treated differently to other assets you own. The trustee of the Fund is generally required to pay your benefits as soon as practicable after your death either directly to one or more of your dependants or to your estate.

In the event of your death:

  • we will continue to deduct applicable administration and adviser fees until the payment of your superannuation benefit is authorised by the trustee and
  • your account is closed and your investments will continue to be invested in accordance with the most recently selected investment strategy until we receive other instructions from a properly authorised person.

Death benefits can be paid as a lump sum, pension or combination. However, only certain beneficiaries who have been nominated by you are eligible to receive your death benefits as a pension. Death benefits pensions are paid via Macquarie Pension Manager.

Who is a dependant?

Under current superannuation law a dependant includes your:

  • spouse (including a de facto spouse but not a former spouse)
  • your children of any age (including adopted children, step-children and ex-nuptial children)
  • any person financially dependent on you or
  • any other person with whom you have an interdependency relationship.

Interdependency relationships

Two people will typically have an interdependency relationship if:

  • they have a close personal relationship and
  • they live together and
  • one or each of them provides the other with financial support and
  • one or each of them provides the other with domestic and personal care.

If two people have a close personal relationship but do not satisfy the other conditions referred to above because either or both of them suffer from a physical, intellectual or psychiatric disability, they may nevertheless have an interdependency relationship.

The Government has introduced leglislation to remove discrimination against same-sex couples in a range of Commonwealth legislation including tax legislation. As a result of these changes, the range of beneficiaries who can qualify as dependants has been broadened to include a same-sex de facto partner and a child of either partner of a same-sex de facto relationship with effect from 1 July 2008.

There are a number of options for nominating to whom, and in some cases how, your benefit may be paid in the event of your death:
  1. No nomination
  2. Non-lapsing death benefit nomination
  3. Reversionary pension nomination (Pension Manager only)
  4. Child Pensions

Your nomination must be in respect of one or more of your dependants or your legal personal representative.

This section will help you understand how you can use your superannuation as an estate planning tool, including details on: