Who will get my superannuation when I die?

Posted: Wednesday, 05 April 2017

Who will get my superannuation when I die?

Who will get my Superannuation when I die?

Super is a non-estate asset and may not form part of your estate administered under your Will. The terms of your super fund's Trust Deed governs how your super asset is distributed.

How do I nominate who receives my superannuation?

The Trust Deed will usually allow you to put into effect a Nomination of Beneficiary Form, which could be either Binding or Non-Binding. The person nominated to receive your benefit must be a dependant or a legal representative of yours as defined under the Superannuation Industry (Supervision) Act 1993 - i.e: a spouse, child, someone who is a financial dependant or anybody who is in an interdependent relationship with you. 

Difference between Binding or Non-Binding nomination

Non-Binding nomination - Not legally binding on the trustees and only persuasive in terms of helping the fund’s trustees determine who should receive a benefit.

Binding nomination - As the name suggests, this form of nomination is binding on the fund’s trustees and cannot be challenged (unlike a Will). It therefore gives certainty.

Please also check your super fund’s policies and procedures about whom you can nominate, for example some superannuation funds only allow you to appoint your spouse.

How can I leave my superannuation to my estate?

If you nominate someone other than a dependant, then the payment of your super to that person would not be guaranteed.

Therefore, it is best to prepare a binding death benefits nomination requiring all super assets to be paid to your estate. Once received by your estate, the assets can be distributed to any beneficiary of your choice in accordance with your Will.

Best advice

Check your Super Company’s policies and procedures and make sure you have a professionally prepared up-to-date Will, to ensure it covers your specific estate planning needs and requests.

Call 1800 068 784 or Click here to enquire about an appointment today.