When was the last time you reviewed your estate plan?

When was the last time you reviewed your estate plan?

Estate planning is about more than having a will in place. Your superannuation, beneficiary nominations and family circumstances can all influence how your assets are managed and distributed. With recent changes affecting testamentary trusts and superannuation death benefit rules, now is a good opportunity to review your plans and ensure they continue to reflect your wishes.

Changes announced in the 2026-27 Federal Budget, together with evolving superannuation rules, highlight the importance of reviewing your estate plan regularly to make sure it continues to reflect your wishes.

Recent changes affecting testamentary trusts

Testamentary trusts have long been used as part of estate planning strategies, helping families manage and protect wealth while providing flexibility for future generations.

The 2026-27 Federal Budget announced a new 30% minimum tax on discretionary trusts, including testamentary trusts (those established by a will), from 1 July 2028.

Following an outcry over what some called a “death tax”, the government announced exemptions for testamentary trusts, along with others including fixed trusts, special disability trusts and charitable trusts.

While the final rules are still being developed, the proposed changes serve as a reminder that estate planning should be reviewed regularly to ensure it continues to support your personal and financial priorities.

When was the last time you reviewed your will?

Many people put a will in place and assume the job is done. However, personal, family and financial circumstances often change over time, making regular reviews important.

Marriage, divorce, the birth of children or grandchildren, the death of beneficiaries, changes in asset ownership, or business succession arrangements can all affect whether an existing will still achieves the intended outcome.

Regular reviews can help ensure your assets are distributed according to your wishes and support your family’s future plans.

As a guide, your will should be reviewed following significant life events and as part of your broader financial planning discussions.

Understanding how your superannuation is distributed

A common area of confusion in estate planning is how superannuation benefits are distributed after death.

In most cases, superannuation benefits are not governed by your will. Instead, the trustee of the super fund determines who receives the death benefit unless a valid nominated beneficiary is in place.

A binding death benefit nomination allows you to direct the trustee of your super fund to pay your death benefit to specific beneficiaries.

Having an up to-date binding death benefit nomination can provide greater certainty about how your superannuation benefits are distributed.

Because nomination requirements vary between funds, it’s worth confirming that your nomination remains valid and reflects your current intentions.

Who can receive superannuation death benefits?

For superannuation purposes, the definition of a dependant is often different from what you might expect.

Generally, dependants may include:

• A spouse or de facto partner
• Former spouses in some circumstances
• Children of any age
• Individuals who are financially dependent on the deceased

It may also include people in an “interdependency relationship” with the deceased. An interdependency relationship can exist where two people have a close personal relationship, live together and provide financial or domestic support to one another.

The rules governing superannuation beneficiaries differ from those that apply to your will, making it important to consider both when reviewing your estate plan.

Why beneficiary decisions matter

The tax treatment of superannuation death benefits depends heavily on who receives the money.

If a death benefit is paid to a tax dependant, the benefit is generally received tax-free. Tax dependants include spouses, children under 18 years of age and people who were financially dependent on the deceased or in an interdependency relationship.

The tax treatment can vary considerably depending on the recipient and their relationship to the deceased. If an adult child is financially independent, tax may apply to some components of a lump-sum superannuation death benefit.

As super balances continue to grow, the potential tax difference between payments to dependants and non-dependants can be substantial. Understanding these rules can help you make informed decisions about your beneficiary nominations.

Next steps

Estate planning is about having confidence that your wishes are clearly documented and that the people important to you are provided for in the way you intend.

A review can help confirm your will, superannuation nominations and other estate planning considerations are working together and continue to support your personal and financial priorities.

If it has been some time since you last reviewed your estate plan, or your circumstances have changed, speak with your local Nexia Adviser about the next steps that may be right for you.