From www.smsfadviser.com: The Federal Court case, Lynn v Australian Financial Complaints Authority [2025] FCA 175, emphasises the critical need for clear succession and estate planning to ensure deceased members’ super death benefits are distributed as intended.

The court upheld AFCA’s determination to allocate 50% of the death benefits to the estranged spouse and the other 50% equally among the six children, acknowledging the limited financial dependency of the spouse.

Legal expert William Fettes advises that effective succession planning, particularly through binding death benefit nominations, is essential to managing risks in superannuation funds.