SMSF Wills: deed, nominations and intent

With an SMSF, your Will is only part of the picture. The deed, your nominations, and trustee control often determine where benefits actually go. The goal is simple: make sure the outcome matches your intent.

The three levers that decide the outcome

If these don’t align, your SMSF death benefits can go somewhere you didn’t expect.

SMSF deed

The rulebook: what the fund allows (nominations, trustee appointment rules, pensions, payments).

Nominations

The instruction: only useful if valid under your deed and executed correctly.

Trustee control

The power to implement: who becomes trustee/director when you die or lose capacity.

Tell it like it is: documents determine SMSF outcomes, not intentions.

Why your Will may not control your super

Super is generally paid by the fund trustee. Your Will only controls it in certain pathways.

What people assume

  • “My Will says who gets everything.”
  • “So my SMSF super will follow my Will.”

What often happens

  • The trustee decides who receives benefits (within the deed and super rules).
  • If nominations are invalid/absent, discretion can apply.
  • If the wrong person controls the trustee, disputes become more likely.
What people mean by an “SMSF Will”
There usually isn’t a single document called an “SMSF Will”. It’s a coordinated setup so your deed, nominations/pension paperwork, trustee control, and your Will all point to the same result.

Case studies (good and bad)

The difference is alignment: deed + nominations + control + estate plan.
Avoid thisBad case: “Will says one thing, SMSF does another”

A member’s Will leaves everything to their children from a previous relationship. There is no valid nomination in the SMSF, and the surviving spouse ends up controlling the trustee.

The trustee uses discretion to pay the benefit to the spouse, not the estate.

Outcome: shock, conflict, and expensive arguments over control and document validity.

Best practiceGood case: “Intent locked in”

The deed is current, nominations/pension documents are correctly executed under the deed, and trustee/director succession is designed so the right person can act quickly.

The Will and broader estate plan also match the SMSF intent (including executor selection and related control roles).

Outcome: the trustee can implement the intended result with far less ambiguity and dispute risk.

Common traps

Most problems come from outdated documents or control gaps.

Traps we see

  • Deed hasn’t been reviewed in years.
  • Nominations exist but aren’t valid under the deed or aren’t executed correctly.
  • Trustee control after death/incapacity wasn’t planned (director/trustee succession unclear).
  • Blended families increase risk if the structure doesn’t clearly enforce intent.

What to do instead

  • Confirm the deed supports the nomination/pension strategy you want.
  • Ensure paperwork is executed properly and kept current.
  • Map trustee/director control on death/incapacity (don’t leave it to chance).
  • Align the Will and executor appointment with the SMSF pathway.
If the deed, nominations, and control don’t align, your SMSF can become a dispute magnet.

Quick checklist

A fast way to spot whether your SMSF estate planning is “tight” or risky.

In a nutshell

Your Will matters — but with an SMSF, it has to be coordinated with the deed, nominations, and trustee control.
An SMSF “Will” is really alignment: deed + nominations/pension paperwork + trustee control + your Will. When those elements point in the same direction, benefits are far more likely to go where you expect.

General information only. SMSF estate planning is complex and depends on your deed and circumstances. Obtain legal/financial advice before making changes.

If you’d like to discuss any of the above further, please don’t hesitate to contact our office.