Superannuation. We pay into it our whole lives in the hope it helps us in the end. But in the unfortunate event you don’t get to spend it all, what really happens to your superannuation when you’re gone?
What many people don’t understand is that superannuation does not automatically form part of your Estate or distributed in accordance with your Will.
After a person passes away, the discretion of who benefits from your superannuation and in what portion, is left with the Trustee of your super company.
So, how can you have a say in who receives your superannuation? By making a valid Binding Nomination.
A valid binding nomination in respect of superannuation is your way of controlling, who receives your superannuation and in what portion. It is important to seek the appropriate advice to ensure any nomination you make with your superannuation fund is valid. If your nomination is invalid, then the super fund will have the power to decide who receives your superannuation.
A binding nomination will be valid if you nominate your spouse, a child or someone who is dependent upon you. If you do not have a spouse, children or anyone who is dependent upon you, then you need to obtain the appropriate advice to discuss how you can make a valid nomination.
If you do wish to leave your superannuation to those who are non-dependant (e.g. siblings, parents), you can make a binding nomination to your Estate or your Legal Personal Representative. When you make a binding nomination to your Estate or your legal Personal Representative, you are directing the Trustee to pay the super to your Estate, to be dealt with under your Will.
However, there are also taxation implications that must be considered before making a valid binding nomination.
If you have any questions surrounding your circumstances and how you can best deal with your superannuation, please contact our Estate Planning expert Krystle Wolthers on (02) 4626 5077.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.