Girlfriend receives $350k instead of young children – What, Why and How?
You may have heard in the news recently about Daniel Leverton, a young man who died unexpectedly. Various people have expressed outrage over the fact that his girlfriend of nine months ended up with around $350,000.00 of his superannuation and life insurance, while his two young daughters only received around $50,000.00 each.
Given the amount of attention this has attracted, we thought that we would explain:
- The process of dealing with superannuation on someone’s death; and
- How to avoid your superannuation and life insurance going to someone that you do not intend it to go to.
- Some joint property will automatically go to the surviving joint owner on your death regardless of what your Will says;
- If you have a life insurance policy outside of superannuation that is set up to be paid to a particular beneficiary rather than your estate, it will
go to that beneficiary; and
- Assets in family trusts are not able to be “gifted” through a Will (although you may be able to pass control).
Who is entitled to claim your death benefit?