Father’s $100,000 superannuation gift to charity ends up in daughter’s hands after family dispute
A dead man’s last wishes collided with a family fight in Australia, and the money did not go where his will suggested. A father of
A dead man’s last wishes collided with a family fight in Australia, and the money did not go where his will suggested. A father of three who died with almost $100,000 in unspent superannuation had intended the money to go to charity, but his middle daughter ended up receiving the full sum after a complaint process.
AFCA sides with the daughter
The ruling came from the Australian Financial Complaints Authority, or AFCA, which handles complaints for most superannuation funds. The father’s three daughters had all wanted a share of the money, including two who had been cut out of his will. In the end, AFCA paid the full amount to the middle daughter.
It was a sharp outcome. The will pointed one way. The money went another.
Why superannuation can escape a will
The case has put a fresh spotlight on a problem many families barely think about until someone dies: unspent superannuation does not always follow the instructions in a will. That makes it hard for people to be certain their retirement savings will land with the person, or institution, they intended.
Leaving super to charity is especially tricky. Even when a will-maker names a charitable cause, superannuation rules and complaints processes can pull the money elsewhere if dependants make a claim.
Research finds wills often lose out
New research by University of Sydney Law School Associate Professors Natalie Silver and Ben Chen found AFCA often departs from a deceased person’s stated wishes when deciding superannuation disputes. The pair analysed 269 decisions and found the authority distributed the super according to the will in 13 cases, or 11.2% of the 116 cases that discussed the will.
The researchers say AFCA gives primacy to the interests of dependants. That approach can override clear instructions in a will. For families, it can mean one final argument over money that sat untouched until death.
A wider warning for will-makers
The dispute is not only about one father’s estate. It also shows how easily superannuation can fall outside the control of a will, even when the instructions seem plain. For charities, it is another reminder that a promised gift may face a challenge before it arrives.
And for families, the next fight may already be waiting in the paperwork.
