Superannuation can be one of the biggest assets an Australian will have during their lifetime, particularly taking into account the death benefit insurance that may be paid in addition to your superannuation balance. However, what happens to it once you pass away?
You may be surprised to find out that your superannuation does not automatically form part of your estate upon your death. This means that your superannuation may not be distributed in accordance with your Will, even if you have a valid Will in place.
Where your superannuation ends up after your death depends on what type of beneficiary nomination you have made and who you have nominated, if any. The types of nominations you can make include:-
- No nomination;
- Non-binding or preferred nomination; or
- Binding nomination.
To have certainty that your hard earned superannuation goes to your intended beneficiary, a binding nomination is required. However, there are certain requirements you must meet in order for your binding nomination to be valid. Only certain people will qualify as valid beneficiaries for a binding nomination and there are certain obligations on you that are required to keep the nomination at its binding status.
If you are concerned about the payment of your super on your death, contact McNamara Law today. Providing advice and completing a binding beneficiary nomination on your superannuation is a service McNamara Law includes when you retain us to prepare your Will. Contact us for more information on 1300 258 888.
Author: Therese Wilkes, Wills and Estates Solicitor at McNamara Law
