Superannuation & Death Benefit Nominations Lawyer Brisbane
Unlike the rest of your estate or belongings and assets, you cannot use your will to assign where your superannuation goes to when you pass away.
When you die, your super fund trustee usually decides on how your super will be distributed. They are not legally bound to consider the contents of your will, even if your super is mentioned in it.
To manage this complication, you should consider assigning your superannuation assets during the estate planning process. You also need to take into consideration the death benefit attached to your super that is payable upon your death.
Your main course of action here is to make either a binding or non-binding nomination of your superannuation beneficiary. You should then provide a copy of this to your trustee so they have an official document stating your explicit request regarding who should receive your superannuation assets.
Who can be named as your superannuation beneficiary?
According to the Superannuation Industry (Supervision) Act 1993 and the Superannuation Industry (Supervision) Regulations 1994, super fund death benefits can only be paid to people who are dependants of the deceased member. A dependant could be:
- The member’s spouse or de facto partner
- A child of the member (biological, step or adopted)
- Any individual established to have been in an ‘interdependency relationship’ with the member at the time of the member’s death
Super benefits can also be assigned to the deceased’s legal personal representative, who is usually the executor of the estate.
However, even if you make a binding nomination naming who you want to receive your superannuation benefits, the trustee is not legally bound to follow your nomination if the person you assign is not a dependant or your legal personal representative.
Planning for where your superannuation benefits will go when you pass may seem confusing at first. However, with our help, we can help you address this concern during estate planning.