Trustee Discretion When Paying Super Death Benefits - Wareham v Marsella case

It's a family feud in this Supreme Court of Victoria case. A step-daughter and her husband have resolved, as trustees, to pay out her deceased mother's entire superannuation death benefit to the step-daughter. The step-father doesn't think this is fair and takes her to court. Who wins?

This case discusses the principles of "good faith", in the context of beneficiaries challenging the power of trustees in discretionary trusts, including self-managed superannuation funds. Do trustees really have absolute and unfettered power in decision-making? We also present some tips and traps for trustees to familiarise themselves with the decision-making process.

This was presented as part of the Death & Taxes - Superannuation Death Benefits webinar with Nathan Yii, recorded on 15 September 2022.