What is a Superannuation Death Benefit Nomination?
Unlike the house or the family farm, superannuation is not asset that you can just leave to someone in your will. Instead it is a trust.
For some superannuation interests, you can chose who gets your superannuation in the event of your death through a death benefit nomination. The rules of a death benefit nomination are provided by your superannuation fund.
A nomination can be either a non-binding or binding nomination. In the event that a death benefit nomination is not provided or not binding, who receives your superannuation is up to the discretion of the trustee. If you have a self-managed super fund this could be a more complicated process and you should speak to a solicitor to make sure that your nomination is legally binding.
Whilst what your Will says about your superannuation may have some influence, if the issue was to go to court, it is important to note that your Will cannot replace a death benefit nomination. In fact, in many cases, a persons Will has had very little influence over how the court has distributed a deceased person’s superannuation benefits
In order to make sure that your wishes are carried out in the event of your death you should complete a binding superannuation death benefit nomination and a well drafted estate plan.
Contact one of our estate planning solicitors today if you would like to start an estate plan or talk more about death benefit nominations.