We have a client who has separated from her husband and she wants to leave her super to her 4 kids.
She does not wish to direct her superannuation proceeds into her estate, because it will likely be bankrupt due to some debts racked up by her ex.
If she directs the money to her minor children, her ex, as their guardian, will control the money. While the ex is only permitted to apply it towards their education, advancement, maintenance and support, and not his own, he could easily whittle more of it away than might be the case if someone else was looking after the money.
One child is 19, and our client trusts him more than her ex. Therefore, the solution is to direct all the super proceeds to him, but he signs a declaration of trust acknowledging that he will hold 75% of the proceeds on trust for his siblings. He can then apply it towards their education, advancement, maintenance and support, and not his step-father and his new mistress.
For help with novel Binding Death Benefit Nominations and Wills, contact Michael Paterson & Associates.