Nominating beneficiaries
Make sure your super ends up in the hands of the person – or people – you want it to
Unlike directly owned property or shares, super doesn't automatically form a part of your estate if you pass away. Instead, your super benefits are paid under the rules of the super fund.
Who can you nominate?
In order for a death benefit nomination to be binding, it must be 'valid'. One of the requirements of validity is that only eligible dependants can be nominated. For the purposes of super law, a dependant includes:
- a spouse (including de facto)
- children of any age, including stepchildren, adopted or children from previous relationships
- someone who is financially dependent on you
- someone in an interdependency relationship with you (i.e. living with you and one or both provide the other with financial, domestic and personal support) at the date of your death
- a Legal Personal Representative (i.e. on behalf of your estate).
You can nominate who you want to receive your super, but not all nominations are the same. The table below compares non-binding and binding nominations. It’s important to know the differences, because the type of nomination you have in place determines how your super benefit will be paid.
Binding vs non-binding nominations
Binding (lapsing and non-lapsing) nominations
| Details | Benefits | Limitations |
|---|---|---|
|
|
|
Non-binding nominations
| Details | Benefits | Limitations |
|---|---|---|
|
|
|
Provide certainty with binding nominations
A binding death benefit nomination is a legally binding nomination that allows you to advise the Trustee who is to receive your super benefit in the event of your death.
The key advantage is that your death benefits will be paid to the dependants you choose and in the proportions you choose. There are also other important advantages:
- Death benefits are likely to be paid more quickly.
- There are fewer requirements for additional paperwork, which assists family members during this difficult time,
- Nominated beneficiaries may choose to retain the benefit in superannuation rather than as a cash payment.
Review your nominations today
When was the last time you reviewed your nominated beneficiaries? Make sure your nominations are up-to-date.
- Login to your account to check your nominations.
- Contact our ClientFirst.
- Speak to your financial adviser.
Additional information for protected members
A protected member is a member of the Fund who is, or becomes, subject to a court order for the guardianship, administration and management of their estate. As a protected member, your affairs will be managed by a guardian or private manager who will have been appointed to manage and protect your estate.
If you do not have a valid binding nomination in place at the time of your death, the Trustee will pay your death benefit to your Legal Personal Representative (i.e. your estate).
For further information please refer to your products General Reference Guide.