Take control of who gets your super.

You may think that you super will automatically go to your spouse or estate if you pass away, but this may not be the case. That is why you need to consider making a binding death benefit nomination. According to current superannuation legislation, "the payment of death benefits from a superannuation fund is determined by the governing rules of the superannuation fund and not in accordance with the terms of the deceased's will". (SMSFD 2008/3 Appendix 1). It is important to take the time to think through who you would want to receive your death benefit.

What is a binding death benefit nomination?

A binding death benefit nomination is a simple form which directs the Trustee of the super fund to pay your superannuation death benefit to one or more eligible beneficiaries if you pass away. If you do not complete and lodge a binding nomination, the Trustee decides who will receive the benefit. This means that you death benefit may not be paid according to your wishes.

Update every three years

Binding death benefit nominations are generally only valid for a maximum of three (3) years. Of course, if your circumstances change, you can submit a new binding nomination which has the effect of beginning a new three year validity period.

How to nominate beneficiaries

Only certain people are eligible to be beneficiaries of superannuation death benefits. This is different to a beneficiary/dependent as described under the taxation laws. To make a binding death benefit nomination or for more information about the eligibility of beneficiaries, please contact our office.

Reference: information in this article were sourced from BT Financial Group, LimeLight Article - January 2010; Aviva Australia Beneficiary Nomination Information March 2010.