Beneficiary Nominations In Superannuation

You are all going to DIE. One day. We just don’t know when that day will be. I know I am sounding a bit morbid but I am sitting at Skyzone surrounded by hundreds of screaming children whilst I write this so I am feeling a little closer to death!

Many people are unaware of the importance of making a Beneficiary Nomination in super. Most super funds will offer you 2 different options when it comes to making a beneficiary nomination in your super fund. A Binding Nomination or a Non-binding nomination.

A binding nomination ensures the Trustee of your superannuation fund is bound to act on your nomination, providing you with certainty that those you nominate will receive your funds. However you can only nominate dependants as defined under superannuation law, ie your spouse (including defacto and same sex couples) or a child of any age or a person financially dependant on you at the time of your death. You can also nominate your Estate (and form part of the Will). This type of nomination will need to be witnessed by two people (but not the persons you are nominating) and may need to be reconfirmed every 3 years (unless your fund offers non-lapsing binding nominations!).

A non-binding nomination is similar to a binding nomination but the important difference is that the Trustee is not bound to act on your nomination. This means that other parties who may have a claim to your super could put their hand up and will be given consideration by the Trustee. You should note that some super funds only offer this type of nomination.

Estate planning can be complex and if you have a complicated personal situation (ie blended families) you should seek the help of a Solicitor in making your nominations and structuring your Will. I have some great contacts available if you are not sure who to speak to.

General Advice Warning - This communication has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individual needs and you should seek advice from your financial or tax adviser before making any investment decisions.