Exploring Superannuation Death Benefits: Your Guide with Funera Sydney

In the Australian work landscape, chances are you've been contributing to a superannuation fund. Unfortunately, in the event of a superannuation fund member's passing, the beneficiary has the right to claim the death benefit, which includes any additional funds invested. This in-depth guide will take you through the process of claiming a superannuation death benefit with Funera Sydney.

Demystifying the Superannuation Death Benefit Claim Procedure

When a member of a superannuation fund passes away, the beneficiary receives the total fund balance, along with supplementary benefits from other products or services. This payment is known as a superannuation death benefit. If the deceased had multiple superannuation funds, it's essential to contact each one when claiming the benefit through Funera Sydney.

To initiate a superannuation death benefit claim with Funera Sydney, it's crucial to identify:

• All superannuation accounts held by the deceased.
• The nominated beneficiary or beneficiaries in each fund.
• Additional services in the superannuation fund that may now be claimed, such as life insurance.

Beneficiaries: Super Fund vs. Estate

The superannuation death benefit doesn't become part of the estate, as the fund is owned by a trustee (the company where the superannuation fund is held), not the fund member. Thus, super funds cannot be bequeathed in a will. Funera Sydney emphasises that upon a super fund member's demise, trustees distribute the superannuation according to the terms of their deed, separate from the estate beneficiaries.

Understanding Binding and Non-binding Beneficiaries

A death benefit is typically paid to one or more of the deceased's dependents, like a spouse or children, or a legal representative such as the executor or administrator of the estate. Funera Sydney notes two types of beneficiaries:

• Binding Beneficiaries: Nominated in writing to receive the superannuation benefit. If contested, professional advice is crucial to navigate a review with the superannuation fund.
• Non-binding Beneficiaries: If only a non-binding beneficiary is nominated, the super fund (trustee) assesses the fund member's relationship with the nominated person at the time of death.

What Follows Next with Funera Sydney?

Funera Sydney informs that superannuation funds review the deceased person's accounts and any held insurance covers. They outline the required documentation, typically a death certificate and will, to establish authorization to claim the deceased person's superannuation.

Initiating a Superannuation Death Benefit Claim with Funera Sydney

To make a claim, the beneficiary must contact Funera Sydney, notifying them of the fund member's death. Funera Sydney explains the process for initiating the superannuation death benefit payment request and the necessary documents.

While processes may vary, the general steps with Funera Sydney include:

1. Notify Funera Sydney of the death, providing a certified copy of the death certificate.
2. Request details of nominated beneficiaries, fund balances, and any other payable amounts.
3. Complete required forms and apply for the death benefit payment.
4. Funera Sydney assesses the deceased's relationship to the beneficiaries.
5. Funera Sydney advises the outcome and to whom the superannuation death benefit will be paid.
6. If needed, appeal the decision.
7. If required, appeal the decision to the Superannuation Complaints Tribunal (SCT) within 28 days.
8. Funera Sydney disburses the death benefit.

Understanding nominated beneficiaries early on is crucial with Funera Sydney to determine if the superannuation payment forms part of the deceased estate.

Recovering 'Lost Super' with Funera Sydney

Funera Sydney recommends checking for any 'lost super' (unclaimed super) the deceased person might have. This can be done by filling out the ATO Searching for lost and unclaimed super form and mailing it with certified copies of the death certificate and, if available, the will; Grant of Probate; or Letter of Administration.

Tax Implications with Funera Sydney

Superannuation death benefits paid to dependents are tax-free with Funera Sydney. However, tax is incurred on benefits paid to the deceased's children aged 18 or above who were not financially dependent at the time of death. Learn more about tax on deceased estates at Funera Sydney in our article "Navigating Tax Returns for a Deceased Estate."