Importance of having a will and cost

[Paul@PFI]

My understanding is that you can designate your estate as the binding beneficiary in your super, which would make it part of your estate.

That is one option. If you want it to be an estate asset. Sometimes that isnt wise. There are cases I have seen where clients should NOT send their super to their estate. Making a will is one thing but really an estate plan is more than just a will. It should review and confirm that appropriate strategies are made for super.

The binding death nomination problem is one of the problems with some SMSFs..How "binding" is a binding death nomination if a person dies and nobody finds it or the surviving trustee doesnt want to comply ?? Wont it just be destroyed ? A good estate plan would ensure that the lawyer has a copy so that the whole of the estate is safeguarded.

There are also a hell of a lot of (current !!) super fund deeds which "mirror" the binding death nomination rules contained in the SIS Act which stipluate witness requirements and a 3 year limit to nominations. SMSF deeds shouldn't contain these rules. These sorts of rules dont apply to SMSFs and yet if the deed contains rules like this it can enforce rules which can invalidate an otherwise valid smsf binding death nomination. Rendering it liable to being bought before a court to determine validity. I say court cause the Super Complaints Tribunal cant hear a SMSF case.

 

[alexlee]

That is one option. If you want it to be an estate asset. Sometimes that isnt wise. There are cases I have seen where clients should NOT send their super to their estate. Making a will is one thing but really an estate plan is more than just a will. It should review and confirm that appropriate strategies are made for super.

I agree it's more complicated for a SMSF. For a non SMSF, though, when would it NOT make sense to send super to the estate? Espeically if you have a decently drafted will where you select competent executors (as opposed to just choosing family) and includes provisions for testamentary trusts?

There are also a hell of a lot of (current !!) super fund deeds which "mirror" the binding death nomination rules contained in the SIS Act which stipluate witness requirements and a 3 year limit to nominations.

Ok, that just means you have to remember to sign the binding nomination every 3 years. That's just an extra administrative step. I don't see the purpose of the emotional language and exclamation marks. Scares the uninformed, no doubt, but it isn't that useful.

These are issues that should be discussed, not just swept up as 'super assets aren't part of the estate'. I would prefer to have the discussion with my advisor that starts with 'super assets are not automatically part of your estate if you die, but here are the options and possible risks'.