Sunday, 3 July 2011

Superannuation Trustees overriding your will. Superannuation Complaints tribunal

Did you know that your superannuation might go to whoever your funds Trustee says it should go to when you die ? Superannuation Trustees are playing God with your money and making decisions which are simply outrageous and often bear no resemblance to what your wishes might be, whether you have a will or not.  Not only that, but Australian Superannuation funds seem to be deliberately misleading people into believing that they have made valid and binding nominations as to who should get their superannuation on their death only to ignore any such nomination when one of their members dies. Many millions of  dollars are being given away each year by fund Trustees to people who claim to be entitled to the money.
Claims for superannuation proceeds now come from all quarters, including De Facto's, girl/boy friends,  past spouses, step children, parents and siblings. The stupid and illogical decisions being perpetrated on  deceased members on almost a daily basis by Superannuation fund Trustees is resulting in an ever increasing number of appeals to the Superannuation Complaints Tribunal by shocked and aggrieved family members. Unfortunately the Tribunals own largess with your money seems of late to be as ill founded as that of some of the Trustees.
Recently the Tribunal upheld the decision of  Trustees who happily handed over almost $300,000.00 to the flat mate of a gay member who had died without a will. Never mind that the father of the deceased had never even met the guy or that the member had been dead for three days before his flat mate even realised he was dead . With the member dead and no one available to contradict his story, the flat mate claimed to be the "De Facto" partner of the deceased and to be in a committed long term relationship with him. Bingo, the Trustees hand over $300,000.00. Not to forget of course that now we have a "Relationships Act" which ensures that the rest of the estate now goes to the short term De Facto partner as well.
Binding nominations CANNOT be effected online despite the fact that many super funds encourage you to believe that they can.  Additionally, there seems to be a direct correlation between the validity of the claim and the speed with which the claim for the superannuation funds is lodged after death. i.e the weaker the claim, the sooner after death it is lodged (and paid), leaving much stronger claims unmet.
If you think you have provided effective instructions as to the disposition of your superannuation, think again and check with your solicitor, you may be surprised.

4 comments:

  1. as unfair in a lot of cases this seems, there are genuine partners out there who are being shafted, such as myself...I will email you my personal story if that is ok?

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