SMSF when a spouse predeceases the member

This question is important in the event that a member client and his/her spouse/partner die as a result of a single event or if a spouse passes away before the member and fails to complete a new death benefit nomination. Not addressing this question leads to uncertainty and the risk that whoever takes control of your superannuation fund following the death of a member or spouse will have the discretion to pay the superannuation death benefits to whoever, providing they are superannuation dependant.


Typically, in this scenario, most people direct their superannuation benefits to their estate, where their Will directs who receives those benefits following the death of a partner. However, this is not always desirable, particularly if it is likely that their estate will be challenged. If relevant, this issue should be discussed with your adviser or inherit nominated lawyer.

In the SMSF area, we have seen recent developments and discussion around the validity of binding death benefit nominations following the release of the High Court's decision in Hill-v-Zuda. An invalid nomination could lead to uncertainty and the risk of superannuation death benefits not going to whom they were intended.