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WA How to Stop Mother from Spending Brother's Superannuation and Life Insurance?

Discussion in 'Wills and Estate Planning Law Forum' started by lisa gliddon, 6 February 2016.

  1. lisa gliddon

    lisa gliddon Member

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    My brother died on January 2016. His will states my mother as the executor of will and me, the sister, as trustee. The beneficiaries are his children, 50/50 as per his will. His ex-wife is not named in the will due to the nature of their separation.

    The insurance and superannuation with one company binding contract again go 50/50 to his children as my brother did not want his ex-wife to have free access to his money but wanted the money to provide for them throughout their life. One child has disabilities.

    The life insurance company has decided that it's better that Mum gets all the money to use as she pleases. How can we stop this from happening?

    We are not trying to stop her from providing for the children, we just want to see that it is used appropriately for the benefit of the children rather than boob jobs and holidays...which are options she has previously suggested she wants money for.
     
  2. Jacqui Brauman

    Jacqui Brauman Well-Known Member

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    I'm surprised that the insurance company would just pay it over. I've had this situation before, and the superannuation company required the mother to set up a trust for the superannuation to be paid into.
    If she doesn't meet her requirements as the trustee for her children, she can be held accountable, but it's really for her children to do that once they are adults. In special circumstances, if she truly breaches her trustee requirements, then you may be able to make an application to court to have her removed as trustee, on behalf of the minor children. But this would all depend on the insurance and the superannuation actually being paid into a trust for the children.

    There are ways of appealing the decision of a superannuation trustee, but I'm not sure if the same rules apply to an insurance company.

    Don't just let it happen - make sure you continue to pursue this. A good result may be to have yourself and the mother as joint trustees for the children and that way you can keep her honest.
     
    lisa gliddon likes this.
  3. lisa gliddon

    lisa gliddon Member

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    We are hoping to convince the insurance company or to get a court order to pay into a maintenance trust.
     

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