What Happens to Your Superannuation When You Die?
Published: 14 April 2026 | Last Updated: 14 April 2026
It surprises a lot of people to learn that their superannuation isn't automatically covered by their will. If you've spent time planning who gets what, it's worth understanding how your super actually gets distributed, because it follows a different set of rules entirely.
Why super sits outside your estate
Your superannuation is held in trust by your fund, rather than owned by you personally the way your house or car is. Because of that, it generally doesn't form part of your estate, and your will has no automatic authority over it.
So who decides where it goes?
Unless you've told your fund otherwise, the trustee of your super fund generally has discretion to decide who receives your death benefit, guided by superannuation law about who counts as a dependant. That can mean your super ends up somewhere other than where you'd have chosen.
Binding death benefit nominations
You can direct where your super goes by making a binding death benefit nomination with your fund. Depending on the fund, this might need renewing every three years (a lapsing nomination) or may not expire at all (non-lapsing). It's worth checking which type your fund offers, and keeping it current.
Can your estate receive it instead?
Yes. Many people nominate their “legal personal representative” which directs the benefit into their estate, to then be distributed according to their will. This can offer more flexibility, particularly for blended families or more complex situations.
A word on tax
Superannuation death benefits paid to a tax dependant, such as a spouse or a minor child, are generally received tax-free. Paid to someone who isn't a tax dependant, such as an independent adult child or the estate, the benefit can attract tax. The rules are specific, so it's worth checking with your fund or accountant based on your circumstances, and getting good advice to support your estate plan.
The practical takeaway
Review your death benefit nomination alongside your will, not instead of it; and revisit it whenever your circumstances change.
By Jessica Spence | Wills and Estates | Orange NSW
This article is general information only and does not constitute legal advice. Your circumstances are unique, if you have questions about your situation, please get in touch for advice specific to you.