Hypothetical by Manny Wood published in the Coffs Coast News Of The Area on 19 February 2021.
Jack and Jill own most of their assets jointly, with a view to making their estate easy to deal with when the first of them passes-away.
Their joint bank account can be transferred into the name of the survivor by attending the local branch with their identification and a certified copy of their spouse’s death certificate.
Their jointly owned IAG shares can be dealt with easily with the assistance of a local broker.
The jointly owned family home, can also be registered in the survivor’s name relatively quickly and without the need to obtain a grant of probate.
Jack and Jill each have a substantial amount of superannuation in their respective retail funds and they execute binding death benefit nominations.
Many years later, Jack passes away. Jill easily deals with the bank account and the shares and her solicitor registers the family home into her name without any problems.
Unfortunately, dealing with Jack’s superannuation becomes difficult.
Jill contacts the fund and they send her a lengthy form detailing numerous requirements, which she does not understand. Jill completes the superannuation forms as best she can and returns them, but the fund requires more information.
Eventually, Jill is advised by the fund that because Jack’s binding death benefit nomination expired, three years after it was made, the fund will need their three adult children to also complete the forms and provide multiple forms of identification before the fund will even consider releasing Jack’s superannuation to Jill.
The process takes many months and when Jill seeks updates from the fund, she finds herself waiting on the phone for around half an hour.
If Jack had an up-to-date binding death benefit nomination in place when he passed, these unacceptable delays in having the funds released to his widow-in-need, would be minimized.
If YOU would like a particular issue addressed please email Manny at manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
