Does superannuation go to the estate when someone dies in Australia?

This catches so many people off guard. Superannuation is held in trust by the superannuation trustee and is not automatically an asset of your estate when you pass away. When you pass away, if you have a valid binding death benefit nomination, then the superannuation trustee must distribute in accordance with that nomination. The nominated person must either be a spouse, a child, someone with whom you are in an interdependency relationship with, or your legal personal representative, i.e., your estate. If the nominated person on your binding death benefit nomination does not fit within one of those categories, your nomination will fail and it will revert to trustee discretion. The trustee will then need to determine which of the eligible beneficiaries your superannuation death benefit is distributed to. If you specifically want superannuation to pass to individuals named in your Will, you must nominate your legal personal representative, ensuring that your nomination is in compliance with the rules of your superannuation fund.