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Case File #38: The Accidental Beneficiary
The Superannuation Sting
Peter was meticulous with his Will. He left everything to his current wife and their young children. He forgot that in 1998, he had signed a 'Binding Death Benefit Nomination' for his industry super fund, naming his first wife as the beneficiary.
When Peter died, the $800,000 in his super fund was paid directly to the first wife. The Will couldn't touch it. Super sits outside the estate, and the BDBN is a 'ticking time bomb' that ignores your latest wishes. Peter’s current family was left with the mortgage and the cars, while a woman he hadn't spoken to in two decades walked away with the bulk of his life’s work.
- Clinical Mystery: Why did a bitter ex-spouse receive a $1M life insurance payout?
- The Human Intent: To 'set and forget' a superannuation binding nomination from 15 years prior
- The Diagnosis: The Nomination Lapse: Your Will does not control your Super. An outdated nomination is a 'heat-seeking missile' for disaster
