1. What is a superannuation death benefit?
   A superannuation death benefit is a benefit payable through a superannuation fund upon the death or terminal illness of a person. The death benefit usually comprises the superannuation account balance and an insurance benefit.
2. Who can claim a death benefit?
   The superannuation fund determines the person(s) entitled to receive a death benefit. In making this decision, the fund is guided by the rules of the Fund, which are contained in a document called a Trust Deed. The rules of the trust deed may also give the fund discretion to determine how the death benefit might be paid.
3. So why do death benefit disputes arise?
   Disputes arise because the deceased’s loved ones may be unhappy with how the fund determines the death benefit will be distributed.
4. Why do death benefits get distributed against the deceased’s wishes?
   They don’t always. The distribution of the death benefit could be distributed according to the deceased’s wishes, but not in accordance with those left behind. Money makes people behave in funny ways, and super funds don’t know the relationship dynamics of the parties so can get things wrong. Also, provision can be made for the distribution of the benefit by a binding nomination, which is a way for the deceased to direct the fund on how to pay the benefit.
5. So, if the Fund makes a decision I don’t agree with, what are my rights?
   If you consider the fund to have made the wrong decision about the distribution of a death benefit, you can lodge a complaint and request they reconsider their decision.
6. Are there time limits for appealing a decision?
   Yes, the time limit to complain about a decision is strict. You have 28 days to lodge a complaint against the decision of the superannuation fund.
7. What if the Fund don’t change their decision?
   If after lodging a complaint you’re still unhappy with the Fund’s decision, you can lodge a complaint at the Australian Financial Complaints Authority, also known as AFCA.
8. Can you reach agreement with the other parties about how the death benefit is distributed regardless of the Fund’s decision?
   It is often possible to negotiate the division of a death benefit with other parties. However, this process usually occurs independent of the superannuation fund and is not relevant to this fact sheet.
9. Can a death benefit be paid before a person dies?
   Yes, it is often possible to have the account balance and a death insurance benefit paid out on the grounds of terminal illness. Terminal illness benefits are paid out tax free but tax on benefits otherwise is beyond the remit of our office and is best provided by a taxation expert.
10. What else do I need to know?
    There is plenty to know that is not covered here. As the usual legal disclaimer goes – the information here is of a general nature because legal advice always depends on your circumstances.

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