Hypotheticals by Manny Wood Published in the Coffs Coast Advocate on 8 December 2018.
Mary separates from her husband and moves in with her cousin, Christine.
They sign a six month lease and share the rental payments. They both receive the Newstart Allowance and share their other living expenses, including utilities, food and outgoings, to cater for their tight budget.
Mary and Christine share the domestic duties, including cooking, cleaning, shopping and the care of their animals.
Mary dies three months later at the age of 55. Mary is survived by three children, aged between 25 and 30 years.
The death benefit payable from Mary’s superannuation fund is $150,000.
Mary leaves a “preferred beneficiaries nomination” naming her three children as beneficiaries of her superannuation. However, the nomination is not binding on the superannuation fund.
Christine claims that she is entitled to the whole of the funds by virtue of being partially dependent upon Mary.
Mary’s superannuation fund decides to pay the whole of the death benefit to Christine, on the basis that although they cohabitated for a relatively short duration, Christine had an expectation of ongoing financial support from Mary.
Mary’s children challenge the superannuation fund’s decision and the matter is heard in the Superannuation Complaints Tribunal of Australia.
The children state that although Mary and Christine referred to themselves as cousins, there was in fact no such relationship between them. They say that their living arrangement was only short-term.
The Tribunal states that the issue of whether Mary and Christine were cousins is not relevant but nonetheless ultimately orders that it is “fair and reasonable” for Mary’s superannuation to be split equally between Christine and Mary’s three children with the effect that they each receive a 25% share.
If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
