Financial Insights – Super inheritances: The lump sum versus pension conundrum
Let’s look at the case of Richie and his wife Sue.
Richie is a member of a superannuation fund which also has life insurance. At the age of 60, Richie passes away. To remove any
uncertainty around his estate, he had a binding nomination in favour of his wife, Sue (aged 57).
In accordance with this nomination, the super fund’s trustee pays the insured amount of $1,000,000 into Sue’s personal bank account.