Australian superannuation laws complicate charitable bequests

Research from the University of Sydney Law School indicates that the Australian Financial Complaints Authority (AFCA) frequently departs from a deceased person's will when distributing unspent superannuation. An analysis of 269 decisions found that in cases where a will was discussed, the authority followed the expressed wishes only in approximately 11.2 percent of instances.

The study, conducted by Associate Professors Natalie Silver and Ben Chen, suggests that the AFCA prioritizes the interests of dependants over the intentions of the will-maker. This creates significant obstacles for individuals attempting to leave superannuation funds to charities.

As superannuation has become a primary source of wealth for most working Australians, researchers argue that the current legal framework is unduly complex. They suggest legislative changes are necessary to ensure that superannuation can more reliably serve as a source for charitable bequests.