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Superannuation death benefit

Superannuation Death Benefit Nominations

Thursday 4th of April 2019
By: Emmy Langmaid, Solicitor, Coote Family Lawyers

You looked after me superbly.

Did you know that when you pass away your superannuation entitlements will not be paid into your Estate automatically?

If you pass away without making a valid Binding Death Benefit Nomination, the Trustee of your Superannuation Fund has the discretion to decide who should receive the death benefit payable in relation to your superannuation entitlements.

Most Superannuation Funds provide their members with the option to make a Non-Binding Death Benefit Nomination or a Binding Death Benefit Nomination.  These Superannuation Death Benefit Nominations allow members to specify who they wish to receive their death benefit when they pass away.         

If you decide to make a Non-Binding Nomination, the Trustee will retain the ultimate discretion to decide who should receive the benefit.  This means that when you pass away the Trustee will take your nomination into account, but they are not required to follow the nomination if they are persuaded that there are other people who should be entitled to receive part of the payment.

The only way to ensure that the death benefit payable in relation to your Superannuation entitlements is distributed in accordance with your wishes is to ensure that you have made a Binding Death Benefit Nomination.  It is not always obvious whether the Nomination that you have made will be Binding or Non-Binding on the Trustee.  Many Superannuation Funds also require that members update their Binding Death Benefit Nomination every 3 years in order for the nomination to remain valid.

Do you know whether you have made a valid Binding Death Benefit Nomination?

The Estate Planning team at Coote Family Lawyers can assist you to make a Binding Death Benefit Nomination or to update your existing Nomination.   Contact Annelis Bos or Emmy Langmaid on (03) 9804 0035 to begin the process today.




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