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NSW Estate Planning - Does My Second Husband Take More Precedence?

Discussion in 'Wills and Estate Planning Law Forum' started by KLP, 6 March 2015.

  1. KLP

    KLP Member

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    Hi Everyone
    Just need some estate planning advice. Its my second marriage and I have a 16 and 18 year old from a previous relationship. Not sure if I should leave my superannuation to my estate upon my death or to my dependent child of 16 in a binding death nomination for taxation purposes. Obviously my second husband is classed as my dependent also but he is not entitled to my home or super as we have only been together for 4 years and he has come into the marriage with no assets.

    I have made a generous provision for him in my last will and testament but I am wondering if the Super fund trustee will make my binding nomination invalid once they see that my daughter will get 90% of the super pay out according to my will instructions. Do super trustees see my second husband has more precedence over my dependent child?
     
  2. winston wolf

    winston wolf Well-Known Member

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    Perhaps I'm wrong but I know of no tax benefit to a binding nomination?
    Why do you believe you current spouse has no claim as you have only been together for 4 years?
    What he brought to the marriage may affect the amount he may claim but not if he may claim.
    A true binding nomination should be binding so the fund cant change it, a no-binding nomination nomination can be varied.
     
  3. winston wolf

    winston wolf Well-Known Member

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  4. bluetongue

    bluetongue Well-Known Member

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    Superannuation and its associated insurance are usually dealt with separately from the estate of the deceased. Your binding death nomination to your daughter should be binding but confirm that in writing with your super trustee. As Winston wrote, there may be tax implications on the distribution of your super to your daughter, especially if she is no longer a financial dependent or is over the age of 25 years. Your husband is not precluded from making a claim on your estate (usually not including super if a binding death nomination is in place). You may wish to consider a binding financial agreement with your husband to ensure that your assets remain with you in case of separation, but once you die, your husband ca file a claim on your estate as a family provision claim. My suggestion is to seek a competent Wills lawyer to draft a Will that caters for the blended family and that can provide advice on your superannuation benefits.
     
    Avatele likes this.

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