Court denies deathbed wish to award $1.2m to estranged lover

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A bitter family fight over a super inheritance highlights the role of binding death nominations, how they work and why it is necessary to regularly review them.

Already a subscriber?A man’s last wish to prevent an estranged lover from inheriting just over $1 million has been dashed by a unanimous ruling of the Federal Court of Australia after nearly five years of legal battles.

The key question for the court was whether Corbisiero and Nguyen remained in a de facto relationship until his death. This was required for the nomination to remain valid.The appeal before the Full Federal Court followed earlier rulings by NM Superannuation and the Australian Financial Complaints Authority as well as a hearing before the Federal Court of Australia.

AFCA found the spousal relationship with Nguyen remained at the time of Corbisiero’s death and was satisfied they had a mutual commitment to a shared life. AFCA ruled the death benefits were payable to Nguyen.The family appealed AFCA’s determination to the Federal Court of Australia, which overturned the decision. The family successfully argued that AFCA had made an error of law by construing that the text message sent by Corbisiero to his sister did not end the relationship.

But Rosaria Corbisiero and her son’s siblings said the relationship had ended around 2016-17 “and certainly by the date of his death”, despite them having remained friends, AFCA had been told.Rachael Hocking, principal solicitor for KHQ Lawyers, which represented Nguyen, says the case highlights many of the misconceptions that people have about their super.

“Super is generally outside the estate,” says Hocking. “It is payable as a result of either retirement or death.“In the case of death, it is in accordance with a binding death benefit nomination or in accordance with the trustee’s determination. The purpose of super is to provide for retirement, or in the event of death to provide for the member’s dependants.”

 

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