Superannuation: who benefits when I’m gone?

Superannuation and estate planning

Getting your affairs in order in the case of your death is a job for everyone – not just senior citizens! We often hear clients say, “I don’t need a will, do I?” Some people think they don’t have the assets to warrant the investment. Others haven’t yet considered the financial burden (as well as the emotional burden) that they’ll leave to their loved ones.

In the third video in our series on estate planning, we give you a great example of why everyone needs a will – at any age. Superannuation, and the benefits that often come with it, is a particularly illustrative point.

Poole Advisory Principal Financial Adviser Anthony Poole asks Anthony Fondacaro from Legacy Wills and Estates to discuss why you should consider the arrangements that will take place after your death. 

As we state over on our estate planning services page:

Watch the video below, or scroll down to read the transcript. 

“Estate planning can help to lessen the legal burden for surviving family members, as well as minimise family disputes and unnecessary costs at what would already be a difficult and emotional time.”

Anthony Poole: What are the implications if people don’t have a will? I mean, everyone should have a will no matter their age, especially if you’re over the age of 18. Single, couple, married, grandparent, business owners as well. 

Anthony Fondacaro: That’s right, Anthony. I’ll use an example: a  young man who’s living outside of home, only has mum and dad, no girlfriend, no kids, no partner. 

If they were to pass away with superannuation, often there’s life insurance held within the super as a matter of default. He thinks, “Well, I’ve got bugger all in the super.” Well, he might have $20,000 in super, but – lo and behold – there’s a $100,000 policy or a $200,000 policy. And so, for the child – or for the parents particularly – in that sort of scenario, having to make their way through how they get access to the superannuation is actually a lot more complicated than people might think.

What happens if I don’t have a will?

Anthony Fondacaro: And the reason that’s problematic is that you can only leave superannuation to a set category of people: a spouse, a child, a financial dependant or an interdependent person. So you can’t direct your superannuation to your parents in those circumstances. But you can direct it to go to your estate and then have the benefits passing in accordance with the terms of your will.

So, even for that 18-year-old who’s just started working, who has already got a super account, who has probably got life insurance within super, that is a good demonstration of why I say you should have a will at age 18.

At that age, and particularly if you’ve got the unfortunate death of a child who is a young adult, it’s tragic enough for the parents – let alone for them to have to be tied up in legal work for 6, 12 and potentially 18 months.

Poole Advisory Superannuation

How an estate planner can help

So that’s a really good demonstration of what we do and, and how we can help – the real value of what we can do for clients. It’s about how we minimise the trouble and minimise the difficulties, and minimise the stress that people go through when they’ve lost someone. Because it’s hard enough as it is at that time.

[Transcript end]

We do hope Anthony’s example has given you food for thought on why everyone needs a will, whatever your age or life stage.

Stay tuned for the final instalment of our video series on estate planning with Anthony and Anthony. In the meantime, check out the further resources on our blog page.

For more information on how Poole Advisory can help you protect your assets and investments for your intended recipients in the event of your death, get in touch today or book an appointment. Your first one is free. 

Compliance Disclaimer:

This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns

Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917

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