There seems to be a myth around Wills and the ‘right time’ to set one up. The most common misconception is that only people that are over 65 years of age, or people with a chronic illness require a Will. So who needs a Will? The answer is EVERYONE and that includes YOU.

Like many, you might think that you don’t have any assets, but you may be wrong. Often there are superannuation funds you are not aware of and even life insurance linked to your superannuation.

Where will this money go after you die?

You can execute a Binding Death Benefit Nomination (BDBN) as part of your industry super, however the superfund can ultimately determine whether to pay the proceeds held in your super if your nominated beneficiary does not fall under a class of a certain type of relationship namely, spouse, dependent or interdependent.

Ms. Ashleigh Petrie tragically died aged 23 in a car accident. She had nominated her mother to benefit from her industry super death benefit. She was engaged to be married to Magistrate Rodney Higgins. Unlike Ms. Petrie’s mother, Mr. Higgins did not have financial need. The industry superfund in question did not pay out the $180,000.00 to Ms. Petrie’s mother as she did not fall under the specific class of beneficiaries and the proceeds were paid to Mr. Higgins as he met the specific class requirement.

Had Ms. Petrie directed her industry super to pay the BDBN to her ‘Legal Personal Representative’ (that is, the executor of her Will) and established a Will naming her mother as a beneficiary, Ms. Petrie’s intention of her mother receiving her super death benefit proceeds would have been fulfilled.

To ensure that your final wishes are carried out, set up a time to discuss your estate planning needs with the team in the Wills & Estates division at Merton Lawyers.

Author, Anna Pitchouguina.