What is a superannuation proceeds trust and how does it work?
If you want your superannuation held in a trust rather than being paid directly to a specific person, you can set up a superannuation proceeds trust in your will.

If you want your superannuation held in a trust rather than being paid directly to a specific person, you can set up a superannuation proceeds trust in your will.
What is a superannuation proceeds trust?
A superannuation proceeds trust is a type of testamentary trust established to receive superannuation proceeds on the death of a fund member. The trust can be established by your will or in some cases, by deed after your death.
A superannuation proceeds trust is similar to other trusts set up in a will, but the money in it is limited to super death benefits, and beneficiaries are limited to your death benefit dependants.
This is a complex area of Australia’s super and tax systems, so it could be worth seeking specialist legal and tax advice before deciding whether to set up a super proceeds trust.
How can you create a superannuation proceeds trust?
To create a superannuation proceeds trust, you will usually have to create a valid binding death benefit nomination in favour of your legal personal representative. This can be done by giving written notice to your super fund. Check with your super fund about this process – there may be a form you can fill out and send back to set up the nomination. You may also like to compare super funds on our database.
Having a binding death benefit nomination in place means your superannuation fund trustee must pay your death benefit into your estate, where the money will be used to create the superannuation trust. Your will should contain special provisions and clauses to allow the trust to be created. If this is something you want to do, you may want to seek professional advice to help reduce the chance of your plans having unintended consequences, like increased tax or potential beneficiaries missing out on receiving a payment.
If you don’t have provisions in your will, it can still be possible to create a superannuation proceeds trust by deed, but the rules are much more complex. For example, not every super fund’s trust deed supports setting up a superannuation proceeds trust in this way.
Additional complications under Australia’s super and tax laws apply to a superannuation proceeds trust created by deed after a deceased member’s death, as opposed to one they create themselves in their will. You may want to check with your super fund about its approach to superannuation proceeds trusts.
If you find that your super fund is not offering you value based on your personal needs, you might like to consider different super fund options that are available.
Why might you set up a superannuation proceeds trust?
If set up correctly, superannuation proceeds trusts can potentially be useful in several situations, many of which are to do with tax and the degree of control over when and to whom a death benefit is paid. Some of the reasons a person might consider setting up a superannuation proceeds trust include:
1. Taxation
If the beneficiaries of a superannuation proceeds trust are also your death benefit dependants, they may be eligible to receive payments from the trust tax-free, regardless of the number of individuals who benefit from the trust This would also be the case if the death benefits were paid directly to the death benefit dependants as a lump sum, according to the Australian Taxation Office.
As with any superannuation testamentary trust, using a superannuation proceeds trust may help to minimise tax payable by beneficiaries who are minors. It’s a good idea to seek advice from a tax specialist about the considerations for your specific situation, as there are many factors that need to be taken into account.
2. Protection from creditors
If superannuation death benefits are paid directly from a super fund trustee to a beneficiary, this can potentially expose the payment to recovery by any creditors the beneficiary owes money to.
Placing a superannuation death benefit in a superannuation proceeds trust can provide beneficiaries with some degree of protection. Broadly speaking, creditors can’t make a claim for the money held by a trust, even if the beneficiary will eventually be entitled to it. This could be useful if, for example, one of the trust’s beneficiaries is in a high-risk occupation or is financially exposed. Similarly, if a beneficiary went through a divorce or similar relationship issues, their share of the benefit held by the trust would generally remain protected from, and inaccessible by, the other party.
3. Longevity and flexibility
There are several reasons why you may not want one or more of your tax dependants to receive their share of your superannuation death benefit immediately after your death. These reasons could include, but are not limited to:
- perceived immaturity
- vulnerability; for example, as the result of a disability or undue influence from others
- wanting the benefit to be paid at a significant point in your beneficiary’s life (e.g. on their 21st birthday)
- wanting their share of the benefits to accumulate in value before being paid to them.
Comparing super funds can be a helpful step towards setting up what you’d like for the future, based on your personal needs and requirements.
Keep in mind that estate planning and trusts can be tricky legal instruments and shouldn’t be set up or arranged without consultation with professionals such as a solicitor, accountant, tax agent and financial adviser, as well as your dependants.
Compare Superannuation with Canstar
The table below displays some of the superannuation funds currently available on Canstar’s database for Australians aged 30 to 39 with a super balance of up to $55,000. The results shown are sorted by Star Rating (highest to lowest) and then by 5 year return (highest to lowest). Performance figures shown reflect net investment performance, i.e. net of investment tax, investment management fees and the applicable administration fees based on an account balance of $50,000. To learn more about performance information, click here. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. Use Canstar’s superannuation comparison selector to view a wider range of super funds. Canstar may earn a fee for referrals.


- Performance, fee and other information displayed in the table has been updated from time to time since the rating date and may not reflect the products as rated.
- The performance and fee information shown in the table is for the investment option used by Canstar in rating of the superannuation product.
- Performance information shown is for the historical periods up to 31/05/2024 and investment options noted in the table information.
- Performance figures shown reflect net investment performance, i.e. net of investment tax, investment management fees and the applicable administration fees based on an account balance of $50,000. To learn more about performance information, click here.
- Performance data may not be available for some products. This is indicated in the tables by a note referring the user to the product provider, or by no performance information being shown.
- Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.
- Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Canstar is not providing a recommendation for your individual circumstances. See our Detailed Disclosure.
- Not all superannuation funds in the market are listed, and the list above may not include all features relevant to you. Canstar is not providing a recommendation for your individual circumstances.
- Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promotion products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promotion products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
- Click here for additional important notes and liability disclaimer.
Performance and Investment Allocation Differences
- Fee, performance and asset allocation information shown in the table above have been determined according to the investment profile in the Canstar Superannuation Star Ratings methodology.
- Some providers use different age groups for their investment profiles which may result in you being offered or being eligible for a different product to what is displayed in the table. See here for more details.
- Australian Retirement Trust Super Savings’ allocation of funds for investors aged 55-99 differ from Canstar’s methodology – see details here.
- The Australian Retirement Trust Super Savings (formerly Sunsuper for Life) product may appear in the table multiple times. While you will not be offered any single investment option, this is to take into account the different combinations of investment options Australian Retirement Trust may apply to your account based on your age. For more detail in relation to the Australian Retirement Trust (formerly SunSuper for Life) product please refer to the PDS issued by Australian Retirement Trust for this product.
- Investment profiles applied initially may change over time in line with an investor’s age. See the provider’s Product Disclosure Statement and TMD and in particular applicable age groups for more information about how providers determine their investment profiles.
Cover image source: ShutterOK/Shutterstock

Canstar may earn a fee for referrals from its website tables and from Promotion or Sponsorship of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees.
On our ratings results, comparison tables and some other advertising, we may provide links to third party websites. The primary purpose of these links is to help consumers continue their journey from the ‘research phase’ to the ‘purchasing’ phase. If customers purchase a product after clicking a certain link, Canstar may be paid a commission or fee by the referral partner. Where products are displayed in a comparison table, the display order is not influenced by commercial arrangements and the display sort order is disclosed at the top of the table.
Sponsored or Promoted products are clearly disclosed as such on the website page. They may appear in a number of areas of the website, such as in comparison tables, on hub pages, and in articles. The table position of the Sponsored or Promoted product does not indicate any ranking or rating by Canstar.
Sponsored or Promoted products table
- Sponsored or promoted products that are in a table separate to the comparison tables in this article are displayed from lowest to highest annual cost.
- Performance figures shown for Sponsored or Promoted products reflect net investment performance, i.e. net of investment tax, investment management fees and the applicable administration fees based on an account balance of $50,000. To learn more about performance information, click here.
- Please note that all information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance; unit prices and the value of your investment may fall as well as rise.
This article was reviewed by our Editor-in-Chief Nina Rinella before it was updated, as part of our fact-checking process.

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