Superannuation is generally not covered by the instructions in the will. It will only be covered by the will if the trustee of the fund pays it, after your death, to your estate.
Subject to the trust deed of the superannuation fund, a superannuation death benefit can be paid by the trustee in any of the following ways:
As a lump sum to dependant/s (as defined by legislation) or the legal personal representative (estate).
As a pension to dependant/s.
There can be tax advantages if a death benefit is paid to a dependant in the form of a pension.
Trust deeds of many superannuation funds do not allow a death benefit to be paid as a pension. Such a deed would deny these beneficiaries a potentially tax effective income source.
If you have a self-managed superannuation fund(s) you may want to review the trust deed to ensure that it gives your beneficiaries the flexibility to receive your superannuation in the form of a pension.
Superannuation is also an effective structure for protecting benefits on behalf of a disabled child. A binding nomination directing that an account-based pension be paid to the child will ensure that benefits are paid out to him or her in a systematic way.
Where the child has a disability, the pension can be maintained for the lifetime of the child.