Superannuation is not an estate asset; on death, it does not automatically flow to your estate. In fact, it’s left to the trustee of your superannuation fund to decide who gets your superannuation and without a nomination, your superannuation benefit will be paid in accordance with rules of the fund and relevant laws. This might not be who you actually want to receive your hard-earned superannuation. Perhaps a former spouse or an estranged child will inherit your super if you never get around to updating your nomination. That’s where superannuation binding nominations come in handy.
Superannuation Binding Nominations
As part of our estate planning service, we will create a legally binding nomination that allows you to choose who to receive your superannuation benefit in the event of your death. Super can be a substantial asset and by including one it helps to complete your estate plan.
Do I need to do a nomination?
No, you should be aware of the risks if you don’t.
Who can I nominate to receive my super?
Usually, any dependents as classified by superannuation laws can be nominated. In most cases, you will nominate your estate, as this provides an effective way to distribute your assets.
How long does a binding nomination last?
They are valid for three years.
Can I do it myself?
Yes. You simply need to contact your super company and ask for the forms.
What happens if my nomination is invalid?
If you don’t sign the form properly or for any other reason the nomination is invalid, then your superannuation will be paid at the discretion of the super fund’s trustee.
How can our estate planning lawyers help?
We can fill out and review the form to ensure it is legally binding and in accordance with your wishes. We can also advise you of any legal implications, particularly in cases where you wish to leave you super to someone other than a dependant. If you wish to learn more please contact us here.