Who will receive your super when you die?
When did you last check who is nominated to receive your superannuation? It is easy to focus on your balance and leave that question for another day, but it is an important part of planning for the people you care about.
A recent 7NEWS Money Talks article encourages Australians to check their beneficiary nominations, including whether a binding nomination has expired. It highlights a common misunderstanding: your super does not automatically follow your Will.
Your Will may not control your super
Superannuation does not automatically form part of your estate. Naming someone in your Will does not, by itself, direct your super fund to pay them your death benefit. Your nomination, the fund’s rules and superannuation law all matter. The payment may also include life insurance held through your fund.
Who can you nominate?
Eligible recipients generally include your spouse or de facto partner, children, someone financially dependent on you, or someone in an interdependency relationship with you. You may also be able to nominate your legal personal representative so the benefit is paid to your estate. The appropriate arrangement depends on your circumstances and estate plan.
Is your nomination still effective?
A valid binding nomination generally requires the fund to follow your direction. A non-binding nomination records your wishes but leaves the trustee with discretion under the applicable rules.
Some binding nominations expire, commonly after three years, while others are non-lapsing. Check your fund’s requirements rather than assuming an old nomination still works.
A practical place to start
Ask your fund who is nominated, whether the nomination is binding and valid, and when it needs renewing. Review it when relationships or family circumstances change, alongside your Will.
Hopper Mott Bunting Lawyers can help you consider how your superannuation arrangements fit with your estate planning. Contact our Wills and Estates team in Cleveland or Capalaba on (07) 3180 3580.
General information only; individual legal, financial and tax advice may be needed.
