Family Lose Fight over Superannuation Payment

In a case that has attracted a great deal of media interest recently, the family of a RAAF mechanic have been told they are not entitled to the bulk of his superannuation benefits following his death.

Daniel Leverton died unexpectedly in 2015 at the age of 40, leaving behind two young children, reports news.com.au. Although he had separated from their mother, the former couple maintained a good relationship, and she was named as the sole beneficiary and executor of his Will, with the understanding that the estate would be used for the benefit of their children.

Mr Leverton had a superannuation policy worth $451,500, which included retirement savings and life insurance. His family assumed this would be included in his estate and distributed in line with his Will. However, because Mr Leverton had not named a beneficiary on his policy, the money was paid in line with the rules of the scheme. This meant that the majority was paid to a woman Mr Leverton had recently begun a cohabiting relationship with.

His family appealed against this to the Commonwealth Superannuation Corporation, which upheld the original award decision. His daughters therefore received only $49,664 each, with his new partner receiving $352,170.

The case is a good example of why it is a requirement to always name a beneficiary on any superannuation policy and to make sure it, along with your Will and other important estate planning documents are regularly reviewed and kept up to date.

Superannuation savings form a substantial part of many people’s assets, and in the event of the policy holder’s death they are paid out in line with the rules of the scheme, normally to a nominated beneficiary where one exists. It is also important to keep in mind that only dependants can receive such payments. This can often come as an unpleasant shock to families, who expect the benefits to be included as part of the deceased’s estate and distributed in line with the Will.

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Sources:

http://www.news.com.au/finance/money/costs/deceased-soldiers-family-devastated-after-tribunal-awards-his-daughters-less-than-onequarter-of-his-estate/news-story/b5a10d85a93c3e9c7a31f32dddaf96a9